XRP transactions nosedive almost 50% in 5 days

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The number of transactions processed on the XRP Ledger has plunged over the past five days, signaling a slowdown in network activity as XRP continues to trade near the $1 mark.

Data from CryptoQuant shows that total XRP Ledger transactions fell from 2.81 million on August 5 to 1.57 million as of August 9, a decline of about 44.1% in less than a week.

XRP Ledger activity climbed from about 1.33 million transactions on August 3 to a peak of 2.81 million on August 5 before reversing course.

Transaction counts fell to roughly 2.4 million on August 6 and August 7 before dropping sharply to 1.37 million on August 8. Activity rebounded slightly to 1.57 million on August 9 but remained well below the week’s peak.

XRP total transaction chart. Source: CryptoQuant

The decline suggests network usage has cooled after a brief surge in demand. Transaction count is a key measure of blockchain activity, reflecting how frequently users and applications interact with the XRP Ledger.

The slowdown followed a short-lived spike that pushed transaction activity to a weekly high on August 5. During the same period, XRP’s price fell from about $1.06 to $1.02.

While lower transaction activity does not necessarily lead to price declines, it can signal weaker network demand and user engagement. Previous slowdowns in XRP Ledger activity have coincided with lower fee burns and softer trading volumes.

At the same time, XRP remains heavily reliant on broader cryptocurrency market sentiment to maintain a firm footing above the $1 support zone. 

XRP price analysis 

In this regard, cryptocurrency analyst Ali Martinez noted in an X post on August 10 that investors should closely watch the $1.06 resistance level.

The analysis was based on Glassnode’s UTXO Realized Price Distribution (URPD) data, which shows that nearly 3 billion XRP last moved around $1.06, making it a significant supply zone.

A decisive monthly close above $1.06 could strengthen bullish momentum and open the door for a move toward $1.35, with $1.64 emerging as the next major upside target.

In the last 24 hours, XRP gained about 0.4% to trade at $1.04 at press time, though the cryptocurrency remains down more than 2% over the past week.

XRP one-week price chart. Source: Finbold

XRP also remains under technical pressure, trading below both its 50-day simple moving average (SMA) of $1.09 and 200-day SMA of $1.32. Trading beneath these key moving averages suggests the broader trend remains bearish.

Meanwhile, the 14-day relative strength index (RSI) stands at 38.44, indicating weakening momentum but remaining above oversold territory. 

The reading suggests selling pressure may be easing, though buyers have yet to regain control. A move back above the 50-day SMA would be an early sign of improving sentiment.

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