The cryptocurrency market recovery has stalled over the past few hours, with Bitcoin failing to overcome the $93k resistance level.
Ripple (XRP) is trading under pressure at press time and risks dropping below the $2 psychological level if the bearish trend persists.
XRP Ledger hits record on-chain activity in 2025
XRP is trading at $2.07 per coin after losing 4% of its value in the last 24 hours.
The bearish performance comes despite XRP Ledger recording its highest on-chain activity in 2025.
The XRP Ledger (XRPL) Velocity indicator reveals that the blockchain recorded a surge in on-chain activity, with the index reaching a yearly high of 0.0324 earlier this week.
Data obtained from CryptoQuant shows that the Velocity metric recorded a sharp increase in economic activity and on-chain transactions on Tuesday, its highest level since the start of the year.
The increase in velocity suggests that market participants are transacting with XRP instead of keeping the coins in cold wallets.
Furthermore, the network data shows that the blockchain is currently experiencing a significant surge in user engagement, despite the current market conditions.
The XRP derivatives market is also recording a minor increase in retail demand.
XRP’s Open Interest (OI) averaged $3.85 billion on Thursday, up from $3.75 billion on Wednesday.
Finally, institutional interest in spot XRP ETFs has remained steady since their launch a month ago.
According to SoSoValue, US-listed XRP ETFs recorded approximately $50 million in inflows on Wednesday, bringing cumulative inflows to $874 million and net assets to $906 million.
The steady ETF inflows could boost the market sentiment and see XRP’s price appreciate in the medium term.
However, at the moment, the technical indicators are bearish, suggesting further downward movement.
XRP dips below $2.1 amid mixed signals
The XRP/USD 4-hour chart is bearish and inefficient as the coin has failed to cover the FVG on the 4-hour timeframe around $2.7.
At press time, XRP is trading at $2.07, slightly above the Monday low of $1.98.
The bearish performance comes as XRP has failed to overcome the resistance level that coincided with the 50-day Exponential Moving Average (EMA) at $2.31.
The other major resistance levels at $2.31, the 100-day EMA at $2.47, and the 200-day EMA at $2.49 present a challenge for XRP in recent weeks.
The Relative Strength Index (RSI) of 36 shows that XRP is extremely bearish and could enter the oversold region if the trend persists.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator on the 4-hour timeframe has yet to flash a buy signal, adding confluence to the bearish narrative.
If the recovery fails, XRP could retest the $1.98 support level over the next few hours.
An extended bearish trend could see XRP drop to the November 21 low of $1.8.
However, if the recovery resumes, XRP could surpass the $2.3 resistance level in the coming days.
A break above this level could confirm a bias switch to bullish, with XRP’s recovery potential toward $3.00 to gain momentum.
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