XRP Transaction Fees Drop 89%: Is Price Headed Below $1.75?
XRP Price Risked a 15% Drop to as Low as $1.73
XRP price risked a 15% drop to as low as $1.73, fuelled by collapsing transaction fees, reduced speculator appetite and a weakening technical structure.
Total Daily Transaction Fees on XRP Ledger Drop Significantly
The total daily transaction fees on XRP Ledger (XRPL) have dropped significantly since the beginning of the year, according to onchain data provider Glassnode. The total fees paid daily on XRP have dropped to about 650 XRP per day from 5,900 XRP per day on Feb. 9, Glassnode said in a Thursday post on X, adding: "This marks an 89% decline to levels last seen since December 2020."
Open Interest and Funding Rates Drop
The drop in transaction fees coincides with a sharp drop in XRP's futures open interest (OI), which has fallen to 0.74 billion XRP from 1.75 billion XRP in early October, representing a 59% flush-out. Paired with the funding rates dropping to 0.001% from 0.01% (7D-SMA), this suggests reduced confidence among derivatives traders in XRP's ability to recover.
Related: XRP Needs a Solana-Style Strategy to Keep Up: Ripple Executive
XRP's Descending Triangle Targets $1.73
Price technicals for the XRP/USD pair are also showing a potential risk of dropping lower if it completes a descending triangle pattern. The chart below points to more downside risk if the price breaks below the triangle's support line at $2.
As Cointelegraph reported, the area between $2 and $1.98 remains a key support zone for XRP, and holding is crucial to avoiding further losses to $1.61.
Key Takeaways:
- XRP transaction fees have dropped to 650 XRP per day, levels last seen in December 2020.
- XRP's descending triangle targets $1.73.
Conclusion
The drop in transaction fees, open interest, and funding rates suggests a potential risk of further losses for XRP. However, some analysts believe that such a drop could be a precursor for a massive rally in XRP price.
Watch Next:
- XRP Needs a Solana-Style Strategy to Keep Up: Ripple Executive
- XRP Price May Grow from $2 to $10 in Less Than a Year: Analyst
Resources & Links:
- XRP transaction fees drop 89%: Is price headed below $1.75?
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