XRP Demand Plummets by 91.5% as Traders Capitalize on $0.65 Support Zone

The cryptocurrency market is experiencing a seismic shift as XRP transaction demand has reportedly plummeted by an astounding 91.5% from its 2025 peak. Investors are now gravitating towards the $0.65 support level, wary of further declines in an increasingly cautious trading environment. With XRP's on-chain activity and investor profitability at record lows, the spotlight is firmly on the crucial $1 to $0.65 price range.

Transaction Activity and Investor Sentiment

Data from Glassnode reveals a significant contraction in XRP's network metrics. The 90-day moving average of total fees paid on the XRP network has plummeted from 5,900 XRP in February to a mere 500 XRP, indicating a stark 91.5% decline. This sharp downturn is viewed as a key indicator of diminished transaction demand, coming on the heels of a speculative surge that once propelled XRP above $3 early last year.

Investor Profitability in Decline

Market participants are increasingly feeling the pressure, as evidenced by a dramatic drop in the realized profit-to-loss ratio, which has fallen from a robust 50 to just 0.38. This shift indicates a troubling trend: for every dollar of profit realized, investors are incurring $1.00 in losses, fueling a capitulation phase that frequently accompanies major market downturns.

Exchange Dynamics and Holder Behavior

Amid this storm, the activity of large holders appears to be shifting. Analyst Pelin Ay notes a decline in substantial XRP transfers to Binance, a typical precursor to major market corrections. Since October 2025, inflows from wallets containing between 100,000 to 1 million XRP have decreased by 15%, while those transferring over a million XRP have fallen by 20%. This suggests that current price weaknesses may stem more from a risk-averse sentiment rather than from aggressive selling by significant holders.

Strategic Focus on the $0.65 Support Zone

As the price continues to navigate downward from its $1.40 support level, traders are eyeing an accumulation range defined by a significant fair value gap between $0.63 and $1.00. Historical trading volume data further supports this outlook, indicating light trading activity below current levels, with a concentrated volume node at $0.50 to $0.65. This region aligns closely with XRP's five-year ascending trendline, projected to intersect near $0.60 to $0.65 over the forthcoming months.

Looking Ahead

Despite the current bearish sentiment, some traders remain optimistic. Analyst Crypto Patel identifies $1.00 to $0.60 as a crucial buying range, suggesting potential long-term gains, while other market analysts maintain bullish breakout targets extending as high as $15 to $18, indicating a whopping 1,100% increase from current levels. As the market evolves, all eyes will be on XRP's performance in the coming weeks as it seeks to establish a stable footing amid turbulent waters.

Source: Cointelegraph

Source: CoinTelegraph - Cryptocurrency & Web3