XRP’s drop toward $2 was preceded by a significant drop in transaction fees, which analysts said may fuel a deeper price correction.
Key takeaways:
- XRP network fees have fallen to just 650 XRP per day — their lowest level since December 2020.
- Meanwhile, XRP’s descending triangle pattern is pointing to a potential downside target of $1.73.
XRP transaction fees fall to five-year lows
Daily transaction fees on the XRP Ledger (XRPL) have plunged sharply since the start of the year, according to onchain data provider Glassnode.
The total fees paid per day have fallen to around 650 XRP, down from 5,900 XRP on Feb. 9, Glassnode reported in a Thursday post on X, noting:
“This marks an 89% decline to levels last seen since December 2020.”
The decline in transaction fees comes alongside a steep fall in XRP’s futures open interest (OI), which has plunged to 0.74 billion XRP from 1.75 billion XRP in early October — a 59% wipeout.
Combined with funding rates dropping to 0.001% from around 0.01% (7-day SMA), the data points to weakening confidence among derivatives traders in XRP’s near-term recovery prospects.
Recent reports show XRP’s social sentiment has slipped into the “fear zone,” marking the highest level of FUD since early October. Still, some analysts argue that such sentiment capitulation has historically preceded major XRP price rallies.
XRP’s descending triangle points to $1.73
Technical indicators for the XRP/USD pair also suggest the potential for further downside if a descending triangle pattern completes.
The chart signals greater risk of a drop should XRP fall below the triangle’s support at $2.
Using the pattern’s measured move — the triangle’s height added to the breakdown point — the target comes to $2.20, implying a roughly 15% decline from current levels.
As noted, the zone between $2 and $1.98 serves as a critical support area for XRP. Maintaining this level is essential to prevent a deeper decline toward $1.61.
