XRP on-chain activity drops sharply this week, raising red flags across the crypto market. Analysts are warning of a potential price correction as key indicators flash bearish signals.
According to Finbold and AMBCrypto, XRP’s recent momentum is fading fast, and technical patterns suggest a downturn may be imminent.
XRP On-Chain Activity Drops Below 1 Billion
Ripple’s native token XRP saw a dramatic decline in network usage. Earlier this quarter, daily transactions regularly exceeded 1 billion XRP.
However, recent data shows a steep fall to just 522 million XRP in daily volume, according to The Currency Analytics.
This drop in activity signals weakening demand and reduced utility across the Ripple network. As transactional volume shrinks, investor confidence may follow suit.
Bearish Signals Hint at Price Correction
Technical indicators are also sounding alarms. The TD Sequential indicator, known for predicting market reversals, has flashed its fourth consecutive sell signal in three months.
Crypto analyst Ali Martinez noted, “Each time this signal appeared, XRP saw a sharp decline shortly after.”
🚨BIG ETH MOVES ALERT
As per CryptoQuant, over 230,000 $ETH were moved by large holders in the past week. pic.twitter.com/N3ce82mSzM
— Coin Bureau (@coinbureau) October 31, 2025
Additionally, the Stochastic RSI has entered overbought territory, a pattern that previously led to 25% average price drops in 2025, according to Cointelegraph.
Price Levels to Watch
XRP is currently hovering near $2.70, with resistance forming at that level. If selling pressure continues, analysts expect a pullback to $2.40 or even $1.14 in the worst-case scenario.
Meanwhile, the Network Value to Transactions (NVT) Ratio has surged, indicating possible overvaluation and hype-driven trading behavior, as reported by Yahoo Finance.
What’s Next for XRP?
While short-term signals point to a correction, long-term optimism remains. Institutional interest, regulatory clarity, and real-world adoption could support future rebounds. However, traders should stay cautious and monitor on-chain metrics closely.
XRP’s on-chain activity drop and repeated bearish signals suggest a correction may be near. With technical indicators aligning and transactional volume falling, the next few weeks could be pivotal for Ripple’s native token.
