XRP DEX Hits 954K Transactions as Price Faces Selling Pressure

The XRP Ledger’s native decentralized change (DEX) simply hit an all-time high of 954,000 day by day transactions on November 4, in line with on-chain information.

While this exercise marked one of many busiest days in current months for the community, the market efficiency of its related XRP token presents a special image.

Record XRP DEX Activity Fails to Lift Price

At first look, the rise within the variety of transactions appeared to sign stronger community well being and adoption inside the XRP ecosystem. However, a more in-depth look showed a worrying disconnect.

According to analyst CryptoOnchain, in contrast to one other surge in utilization in July, which coincided with a significant value leap, the most recent document got here as XRP’s value fell from the $3 vary in early October to round $2.21 on the time of this writing. This divergence between transaction development and market worth suggests the high quantity could not come from real shopping for curiosity.

Instead, the market watcher pointed to potential “large-scale promoting, whale distribution, or automated arbitrage buying and selling” as the true drivers of the exercise. In different phrases, merchants could also be utilizing the DEX to rebalance or exit positions relatively than accumulate tokens.

“Elevated community exercise isn’t at all times bullish,” cautioned CryptoOnchain, including that buyers ought to deal with the mismatch between utilization and value as a doable purple flag.

“Until value motion aligns with on-chain development, this metric ought to be considered as a possible warning signal relatively than a purchase sign,” he wrote.

Whales Reduce Exposure as Broader Market Wobbles

Data from CoinGecko has confirmed XRP’s downward trajectory. The asset has fallen 15.9% over the previous week and 26% within the final month and was buying and selling practically 39% beneath its July all-time high of $3.65 at press time.

Whale conduct additionally intensified the present market turbulence. As CryptoPotato beforehand reported, massive XRP holders sold roughly 900,000 tokens in simply 5 days, contributing to the week’s double-digit slide. On-chain information additionally signifies that whereas whale-to-exchange transfers have slowed since late October, current promoting should still be weighing on sentiment.

But XRP isn’t alone. The broader crypto market suffered heavy losses as nicely, with Bitcoin (BTC) dropping beneath $99,000 for the primary time in 5 months and Ethereum (ETH) slipping beneath $3,200. In complete, over $1.75 billion in leveraged positions had been liquidated inside 24 hours, with $38.6 million tied to XRP.

Despite the final gloom, analyst Egrag Crypto argued on X that XRP’s “stronger resilience” in comparison with Bitcoin and Ethereum may mark the tip of the selloff. He pointed to a possible “accumulation zone” round $1.94, suggesting the present weak spot may be the final shakeout earlier than restoration. However, market confidence continues to be a problem, and the decline is being mirrored in CoinMarketCap’s Fear & Greed Index, which not too long ago dropped to twenty, its lowest degree in months.

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