2024

bullish

<p><a href="https://bitcoinist.com/highlights-ripple-xrp-report/" rel="nofollow">Ripple’s Q2 2024 market report</a> recently highlighted a decline in a crucial on-chain metric that could significantly impact the <a href="https://bitcoinist.com/xrp-price-rise-2900-to-18/" rel="nofollow">the XRP price</a>. This decline in network activity and several other factors threaten to send the crypto token to new lows soon enough.&nbsp;</p> 
<h2 id="xrp-records-decline-in-on-chain-transactions">XRP Records Decline In On-chain Transactions</h2> 
<p>According to the <a href="https://ripple.com/insights/q2-2024-xrp-markets-report/" rel="nofollow">report</a>, on-chain transactions on the <a href="https://bitcoinist.com/ripple-tokenized-us-treasury-bills-xrp-ledger/" rel="nofollow">XRP Ledger (XRPL)</a> declined by 65.6% in the second quarter of 2024. 86.38 million transactions were recorded during this period, compared to 251.39 million in the first quarter of this year. A drop in the network activity is significant as it highlights investors’ sentiment towards the XRP ecosystem.&nbsp;</p> 
<p>This decline in network activity can also negatively impact <a href="https://www.newsbtc.com/analysis/xrp/xrp-price-falls-below-0-50/">the XRP price</a>, especially if this trend continues in the third quarter of the year. A plausible explanation for the decline in on-chain transactions for the XRPL in the second quarter is XRP’s underperformance in the first quarter of the year.&nbsp;</p> 
<p><a href="https://bitcoinist.com/analyst-5000-xrp-price-25/" rel="nofollow">High expectations for XRP</a> heading into the new year may have prompted investors to increase their exposure to the crypto, which led to the highs in network activity recorded in the first quarter. However, these investors may have had a rethink as XRP failed to reach new highs even when Bitcoin hit a <a href="https://bitcoinist.com/bitcoin-breaks-through-69000-setting-new-record/" rel="nofollow">new all-time high (ATH)</a>, leading to a decline in network activity in the second quarter.&nbsp;</p> 
<p>The silver lining is that XRP investors have regained their bullish sentiment towards XRP, leading to increased network activity. Bitcoinist <a href="https://bitcoinist.com/xrp-whales-84-million-buying/#:~:text=XRP%20Whales%20Buy%20140%20Million%20Tokens&amp;text=This%20development%20highlights%20these%20investors,for%20the%20past%20six%20years." rel="nofollow">recently reported</a> a spike in new addresses and the number of addresses interacting on the XRPL, with these metrics reaching their highest levels since March earlier this year.&nbsp;</p> 
<p>The revived bullish sentiment among XRP investors is mainly thanks to the belief that the <a href="https://www.newsbtc.com/ripple-2/ripple-vs-sec-update-lawsuit/">lawsuit</a> between the <a href="https://www.newsbtc.com/crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC's%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&amp;text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.">US Securities and Exchange Commission (SEC)</a> and Ripple could end soon, presenting a bullish outlook for XRP’s price. However, if that doesn’t happen soon enough, XRP is at risk of witnessing a significant price decline as activity on the XRPL drops.</p> 
<h2 id="other-factors-that-could-contribute-to-a-crash-for-the-xrp-price">Other Factors That Could Contribute To A Crash For The XRP Price</h2> 
<p>The <a href="https://bitcoinist.com/bitcoin-price-tumbles-to-61000-is-a-relief-rally/" rel="nofollow">bearish sentiment</a> in the broader crypto market is another factor that could contribute to massive price declines for XRP. Bitcoin is currently struggling to <a href="https://www.newsbtc.com/news/bitcoin-price-revisits-50k/">hold above $50,000</a>, and the flagship crypto could send altcoins like XRP crashing if it continues to drop to new lows. XRP is also well-placed to be among the altcoins that will be most affected, seeing how the crypto token has so far reacted to <a href="https://bitcoinist.com/bitcoin-weak-btc-recovery-will-be-delayed/" rel="nofollow">Bitcoin’s recent crash below $60,000</a>.&nbsp;</p> 
<p>The conclusion of the lawsuit between the SEC and Ripple could also negatively impact XRP’s price if the remedies awarded against the crypto firm align with the Commission’s proposed remedies. The SEC has <a href="https://bitcoinist.com/ripple-vs-sec-settlement-this-thursday/" rel="nofollow">asked</a> Judge Analisa to award a fine of $102.6 million against Ripple, which is way above the $10 million that the crypto firm proposed.&nbsp;</p> 
<p>At the time of writing, XRP is trading at around $0.46, down over 16% in the last 24 hours, according to <a href="https://coinmarketcap.com/currencies/xrp/" rel="nofollow">data</a> from CoinMarketCap.&nbsp;</p> 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/CNFLZev6/" alt="XRP price chart from Tradingview.com" width="3286" height="1518">

XRP Ledger Sees Sharp Decline In Major Metric That Threatens To Send XRP Price To $0.2

Table of Contents

NewsBTC

Other articles published on Aug 6, 2024

Crypto Market Crashes: Bitcoin Falls 16% and Ethereum Plunges 22% Amid $1B Liquidations

Bybit Introduces Pre-Market Perpetuals for Trading Upcoming Tokens

Investors Stock Up Amid Bitcoin Dip – Top 3 Coins Ready to Explode in the Coming Bull Rally

Ripple’s XRP Token Sees Short-Term Price Increase

Vitalik Buterin Airdrop Sale Triggers Wild Neiro Rollercoaster

ONDO Soars 30% Amid Major Perpetual Listing

Join our free newsletter for daily crypto updates!