Top Highlights
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XRP Price Drop: XRP’s price has fallen to $2.21 despite a surge in activity on its decentralized exchange (DEX), marking a significant divergence from market trends.
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Record DEX Transactions: The XRP Ledger recorded a peak of 954,000 daily transactions, indicating strong network usage, yet this did not lead to price appreciation.
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Market Warnings: Analysts caution that elevated transaction volumes may stem from large-scale selling or arbitrage, rather than genuine buying interest, signaling potential risks for investors.
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Broader Market Impact: XRP has declined 15.9% in the past week, in line with overall market losses, while whale activity further exacerbates the downturn, contributing to decreased investor sentiment.
XRP DEX Hits 954K Transactions as Price Faces Selling Pressure
The XRP Ledger’s decentralized exchange (DEX) achieved a milestone on November 4, reaching 954,000 daily transactions. This surge highlights growing usage within the XRP ecosystem. Yet, the price of XRP has declined to $2.21, raising concerns about market dynamics.
Analysts noted a significant divergence between transaction volume and the token’s market value. Despite the record usage, XRP’s price has fallen from about $3 in early October. Expert CryptoOnchain analyzed this trend, suggesting that high transaction numbers might stem from factors like “large-scale selling” and automated trading rather than enthusiastic buying.
In addition, whale activity contributed to this scenario. Large holders sold approximately 900,000 XRP tokens in just five days. This selling pressure aligns with a broader downturn in the cryptocurrency market, where Bitcoin and Ethereum also experienced significant losses.
However, not all experts view the situation negatively. Analyst Egrag Crypto pointed to XRP’s “stronger resilience” compared to major counterparts. He identified a possible accumulation zone around $1.94, indicating that current weakness might precede a future rally.
As the market trends evolve, the disconnect between usage and price poses challenges for investors. Therefore, they should monitor current conditions closely. Although XRP faces headwinds, developments in the DEX space could point to a robust future.
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