Despite the modest recovery, market sentiment remains cautious as traders await stronger signs of bullish momentum.
Onchain data, however, paints a more optimistic picture. Analytics firm Santiment reported a surge in XRP network activity
, with more than 21,000 new wallets created in just 48 hours. This is the fastest growth rate recorded in eight months.Meanwhile, data from CryptoQuant revealed record-breaking activity on the XRP Ledger’s decentralized exchange (DEX), which saw 954,000 transactions in a single day, marking one of the busiest trading sessions in recent memory.
Rising Activity but Mixed Signals
Typically, a sharp increase in network usage suggests growing adoption and healthier market conditions. Yet, this time, the spike in activity came alongside a price drop, a divergence that left analysts questioning the underlying motivations behind the transactions.
Some market observers believe the increased volume may not entirely reflect new organic buying. Instead, they suspect that much of the movement is being driven by whale distribution, arbitrage, or automated trading activity. “While the data shows strong engagement on the ledger, not all of it necessarily translates to genuine buying pressure,” one analyst explained.
XRP has remained in a clear downtrend since hitting its 2025 peak of $3.66 on July 18, weighed down by persistent whale selling. Over the last 90 days, large investors offloaded more than $650 million worth of the crypto token, according to onchain data.
Encouragingly, that trend appears to be easing, with recent whale flows turning neutral. This is also a potential early sign of a market bottom forming.
Traders Rotate into XRP Amid Broader Market Caution
Futures market data adds another layer to the evolving picture. According to crypto analyst Crazzyblockk, open interest in XRP futures on Binance has remained notably resilient compared to other major cryptocurrencies.
While Bitcoin and Ether saw their futures positions shrink to $59.87 million and $148.69 million respectively, XRP’s derivatives market showed relative stability.
“Traders appear to be rotating into XRP,” the analyst noted, “using minor dips to accumulate positions, in stark contrast to the risk-off sentiment dominating BTC and ETH markets.”
With whale selling slowing, wallet creation accelerating, and derivatives data showing renewed trader interest, XRP could be entering a period of consolidation. However, analysts caution that confirmation from price action will be essential before declaring the end of its downtrend.
The post XRP Shows Signs of Stabilization as Network Activity Surges appeared first on BitcoinLinux.com.
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Author: coinmaker