XRP’s (XRP) decline towards $2 was preceded by a notable drop in transaction fees, which analysts suggest may lead to a more profound price correction.
Key takeaways:
Daily transaction fees for XRP have fallen to 650 XRP, a level last recorded in December 2020.
XRP’s descending triangle indicates a target of $1.73.
XRP Transaction Fees Hit Five-Year Lows
The daily transaction fees on XRP Ledger (XRPL) have notably decreased since the year’s onset, based on data from onchain provider Glassnode.
Related: XRP requires a Solana-like strategy to maintain relevance: Ripple executive
“This represents an 89% decline to levels last observed in December 2020.”
The decrease in transaction fees aligns with a sharp reduction in XRP’s futures open interest (OI), which has dropped to 0.74 billion XRP from 1.75 billion XRP in early October, marking a 59% decrease.
Along with funding rates falling to 0.001% from 0.01% (7D-SMA), this indicates diminished confidence among derivatives traders regarding XRP’s potential recovery.
As noted by Cointelegraph, social sentiment surrounding XRP has plunged into the “fear zone,” its highest FUD since early October, yet some analysts suggest this dip could precede a substantial rally in XRP’s price, as observed historically.
XRP’s Descending Triangle Indicates $1.73
Technical analysis of the XRP/USD pair reveals a potential risk of further declines if the descending triangle pattern reaches completion.
The chart below suggests increased downside risk if the price breaches the triangle’s support level at $2.
The projected target of the pattern, calculated by adding the triangle’s height to the breakout point, stands at $2.20, reflecting a 15% drop from the current price.
As Cointelegraph reported, the range between $2 and $1.98 remains a crucial support zone for XRP, and maintaining it is vital to prevent further declines to $1.61.
This article does not offer investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before proceeding.
This article does not provide investment advice or recommendations. Each investment and trading action involves risks, and readers should conduct their own research before making decisions. While we aim to deliver accurate and timely information, Cointelegraph does not ensure the accuracy, completeness, or reliability of the information presented. This article could contain forward-looking statements that may have associated risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from reliance on this information.
