XRP’s (XRP) decline towards $2 was preceded by a notable decrease in transaction fees, which analysts suggest may lead to a more significant price correction.
Key takeaways:
XRP transaction fees have fallen to 650 XRP per day, a level not witnessed since December 2020.
XRP’s descending triangle indicates a target of $1.73.
XRP transaction fees hit five-year lows
Related: XRP requires a Solana-style strategy to remain competitive: Ripple executive
The total fees paid daily on XRP have decreased to around 650 XRP per day from 5,900 XRP per day on February 9, Glassnode reported in a Thursday update on X, adding:
“This represents an 89% decrease, reaching levels last seen in December 2020.”
The reduction in transaction fees aligns with a sharp decline in XRP’s futures open interest (OI), which has dropped to 0.74 billion XRP from 1.75 billion XRP earlier in October, marking a 59% decrease.
Alongside the funding rates falling to 0.001% from 0.01% (7D-SMA), this indicates diminishing confidence among derivatives traders regarding XRP’s rebound potential.
As Cointelegraph has noted, social sentiment around XRP has plummeted into the “fear zone,” reflecting the most FUD since early October, yet some analysts suggest that such a decline could precede a significant rally in XRP’s price, reminiscent of previous patterns.
XRP’s descending triangle suggests $1.73 target
Technical analysis for the XRP/USD pair indicates a potential risk of further declines if it completes a descending triangle pattern.
The chart below reveals increased downside risk if the price breaches the triangle’s support line at $2.
The projected target of the pattern, determined by adding the triangle’s height to the breakout point, is $2.20, indicating a 15% decrease from the current price.
As Cointelegraph mentioned, the region between $2 and $1.98 is a critical support zone for XRP, and maintaining this level is essential to avoid further declines to $1.61.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research when making any decisions.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research when making decisions. While we strive to deliver accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information contained in this article. This article may include forward-looking statements that carry risks and uncertainties. Cointelegraph will not be held responsible for any loss or damage resulting from reliance on this information.
