XRP Sees Unprecedented Network Activity Amid Price Decline

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A stark contrast is emerging in the XRP market. While retail sentiment appears strained, on-chain metrics and institutional capital movements tell a significantly different story. Despite recent price weakness, the network is experiencing record engagement, with major investors seemingly using the downturn as a strategic accumulation opportunity.

The behavior of professional market participants highlights this divergence most clearly. U.S. spot ETFs have recorded net inflows for 16 consecutive trading days, amassing over $860 million in total. These funds are currently absorbing a substantial portion of the newly available supply, acting as a stabilizing force on the buy side. Furthermore, regulatory developments continue to bolster the asset's infrastructure. Following the resolution of its longstanding legal dispute in August 2025, the token is seeing further integration into mainstream finance. The U.S. exchange Bitnomial plans to launch regulated derivatives markets for XRP—including futures and options—this Monday, a move expected to deepen overall liquidity.

Fundamental Metrics Signal Strength

The fundamental picture sharply contradicts the current price action. According to data from CryptoQuant, the "Network Velocity," which measures how frequently tokens change hands, hit a yearly high this week. This indicates that XRP is not sitting idle in wallets but is being actively used for transactions and liquidity provision. Simultaneously, large holders known as "whales" have consolidated their positions. These major investors now hold approximately 48 billion XRP, marking the highest level in seven years. This accumulation occurs as sentiment indicators show retail investors are experiencing "extreme fear," suggesting a long-term positioning strategy by capital-rich entities.

Technical Price Picture Remains Challenged

The price chart itself presents a tougher narrative for traders. As the week closed, XRP faced significant pressure, declining 4.82% on Friday to settle at $2.10. This drop has widened the gap to its 52-week high of $3.04, which was recorded just last October. From a technical perspective, the asset is now attempting to establish a price floor while short-term momentum remains negative.

The current market phase is defined by a classic divergence: price performance lags behind underlying network strength. Record on-chain activity coupled with the introduction of new institutional trading vehicles is creating a solid foundation. The critical question for the path ahead is whether the sustained high level of institutional demand can successfully absorb the technical selling pressure in the coming week.