XRP has dropped below $2, declining 17% over the past week. However, despite the bearish trend, on-chain data indicates a surge in network activity, raising questions about the underlying market sentiment.
With a pending final decision on the Ripple lawsuit expected a month later, on April 16, the XRP community might be holding on despite the macroeconomic downturn.
XRP Active Addresses Have Tripled in Two Weeks
According to on-chain data from Glassnode, from February 21 to March 10, the number of active XRP addresses more than tripled.
On February 21, XRP had 89,606 active addresses, but by March 2, this figure had spiked to approximately 543,000.
Although there was a minor dip afterward, active addresses rebounded to 531,000 on March 7. As of March 10, XRP still maintains over 370,000 active addresses—far above its previous levels.
At the same time, XRP’s exchange outflows from Binance have significantly declined. On March 7, over $465 million worth of XRP left Binance, marking the highest daily outflow in a month.
However, in the past three days, outflows have sharply decreased, suggesting a slowdown in large-scale withdrawals from the exchange.
The divergence between price action and network activity raises key questions about market sentiment.
A surge in active addresses typically indicates heightened user engagement, suggesting growing demand or increased transaction volume.
However, the decline in Binance outflows may signal reduced accumulation pressure or hesitation among investors to move assets off centralized platforms. This is often interpreted as uncertainty about price direction.
Some analysts argue that XRP’s price decline, despite resilient network participation, could point to short-term speculative trading rather than fundamental weakness.
Meanwhile, the drop in exchange outflows may indicate traders holding onto their assets rather than exiting.
Still, without a corresponding price rally, it suggests an equilibrium where neither buyers nor sellers have a decisive advantage.
While the data reveals strong activity on the XRP Ledger, the market remains in flux.
Whether this heightened engagement translates into future price recovery or continued consolidation remains to be seen.
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