XRP is trading around $1.40 after the market posted modest gains after a volatile week that saw sharp intraday swings across several major cryptocurrencies. While price action has stabilized in the short term, data on the chain suggests that the underlying market participation may be entering a quieter phase.
Related reading
According to a CryptoQuant analyst, activity on centralized exchanges has decreased significantly in recent weeks. Data tracking XRP deposits and withdrawals on major trading platforms shows that the number of transactions has dropped to the lowest levels on record since the metric began tracking exchange behavior.
This indicator, known as Multi Exchanges Daily Depositing and Recovering Transactions Delta, monitors the net number of XRP transfer transactions on 15 major cryptocurrency exchanges. Unlike traditional flow metrics that measure the volume of coins moving in and out of exchanges, this dataset focuses on the number of transactions themselves.
This distinction provides insight into user behavior rather than capital size. From a practical perspective, the metric shows how many participants are actively interacting with the exchange by sending or withdrawing XRP.
The latest decline, therefore, indicates a slowdown in user sharing activity. Such cycles often occur when markets move between phases, as traders back away from short-term speculation while waiting for a clearer price direction.
The activity of the XRP exchange shows the cooling phase of the market
The report also explains how deposit and withdrawal transaction metrics should be interpreted in the broader market context. Unlike volume-based indicators, this data set focuses on the number of transactions that occur on exchanges, rather than simply measuring capital flows, helping to detect changes in investor behavior.
When the metric spikes, it usually indicates that more users are sending XRP to exchanges than withdrawing. In market conditions, this behavior is often preceded by increased selling pressure as traders move coins to trading platforms in preparation for a possible liquidation.
When the indicator decreases, the opposite dynamic occurs. Lower readings usually indicate that investors are withdrawing XRP from exchanges to private wallets. This behavior often coincides with accumulation phases, when participants transfer assets from trading platforms and reduce their short-term selling intentions.
Related reading
The latest data shows a significant decrease in the number of XRP deposits and withdrawals. From a practical point of view, very few investors are currently interacting with exchanges using XRP, creating an unusual market environment.
The broader context is also important. XRP is down more than 60% from its previous highs, a move that appears to have significantly reduced retail participation. The last rate of growth of exchange deposits occurred in January 2025 when XRP approached the level of $3. Binance remains the main activity of exchange transactions.
XRP is struggling to regain key resistance as the downtrend remains
XRP continues to trade near the $1.40 level after a long correction that has defined its price structure since the end of 2025. The daily chart shows the asset recovering after a sharp sell-off that took prices from $2.30 to $1.20-$1.30 earlier this year.
The broader technical framework remains tenable. XRP has consistently traded above its major moving averages, including the 50-day, 100-day, and 200-day trends, all of which are currently down. This alignment typically reflects sustained selling pressure and a lack of strong bullish momentum.
Related reading
Recent price action suggests that the $1.30-$1.35 zone is currently acting as short-term support. Buyers poured in after the February surrender that briefly pushed XRP into the $1.20 area and triggered a pullback that took the asset back to the $1.40 area.
However, the above efforts remain limited. The decline in the 50-day moving average near $1.60 now represents the first level of resistance. A rebound above this area would indicate an improvement in momentum and could allow XRP to test the $1.80-$2.00 range.
Featured image from ChatGPT, chart from TradingView.com
