XRP Holds Steady Amid Declining On-Chain Activity and ETF Demand
XRP is maintaining its position above the $1.50 support level, despite a slowdown in on-chain activity and cooling demand. The cryptocurrency has been trading sideways between $1.45 and $1.60, supported by major moving averages and the SuperTrend indicator. This cautious optimism is reinforced by a steady risk-on market sentiment, as indicated by the Fear & Greed Index hovering at 70 in the Greed territory.
The XRP Ledger (XRPL) is experiencing a decline in user engagement, with active addresses dropping to about 15,000 from a six-month high of 30,000 in September. While the cumulative XRP account count is rising, daily active users are falling, signaling a divergence between address creation and actual usage. This reduced network activity, combined with diminishing inflows into US-listed spot Exchange-Traded Funds (ETFs), suggests weakening demand for XRP.
XRP ETFs recorded nearly $5 million in inflows last week, marking the 12th consecutive week of positive ETF inflows. However, this persistent capital inflow has not yet translated into a sustained long-term bullish trend for XRP. The derivatives market remains steady, with perpetual futures Open Interest (OI) holding at 2.26 billion XRP, indicating a lack of significant momentum for a breakout above $1.60.
Technically, XRP is trading at $1.51, supported by the 50-day Exponential Moving Average (EMA) at $1.40 and the 200-day EMA at $1.38. The Relative Strength Index (RSI) stands at 58, suggesting constructive but not overbought conditions. Immediate support lies at the 50-day EMA near $1.40, ahead of the 200-day EMA at $1.38, which should act as a secondary floor if a deeper pullback unfolds.