XRP is trading around $1.40 after the market posted a modest gain following a volatile week that saw sharp intraday swings in several major cryptocurrencies. While short-term price action has stabilized, on-chain data suggests underlying market participation may be entering a calmer phase.
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According to a CryptoQuant analyst, activity on centralized exchanges has dropped significantly in recent weeks. Data on XRP deposits and withdrawals on major trading platforms shows that the number of transactions has fallen to the lowest level since the metric started tracking stock market behavior.
The indicator, known as the Multi Exchanges Daily Depositing and Withdrawing Transactions Delta, monitors the net number of XRP transfer transactions on 15 major cryptocurrency exchanges. Unlike traditional flow metrics that measure the volume of coins moving to and from exchanges, this dataset focuses on the number of transactions themselves.
This distinction provides insight into user behavior rather than capital size. In practical terms, the statistic shows how many participants actively interact with exchanges by sending or withdrawing XRP.
The recent decline therefore signals a slowdown in user-driven exchange activity. Such periods often occur when markets transition between phases, as traders move away from short-term speculation in anticipation of clearer price direction.
XRP Exchange Activity Signals Market Cooldown Phase
The report too explains how to interpret deposit and withdrawal transaction statistics within a broader market context. Unlike volume-based indicators, this dataset focuses on the number of transactions taking place on different exchanges, which helps reveal shifts in investor behavior rather than simply measuring capital flows.
When the metric rises sharply, it usually indicates that more users are sending XRP to exchanges than withdrawing it. In market terms, that behavior often precedes increased selling pressure, as traders move coins to trading platforms in preparation for a possible liquidation.
The opposite dynamic arises when the metric falls. Lower values generally suggest that investors are withdrawing XRP from exchanges into private portfolios. This behavior often corresponds to accumulation phases, in which participants remove assets from trading platforms and reduce their intention to sell in the short term.
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Recent data shows a marked decline in the number of XRP deposit and withdrawal transactions. In practical terms, fewer investors are currently interacting with exchanges using XRP, creating an unusually quiet market environment.
The broader context is also important. XRP is down more than 60% from its previous highs, a move that appears to have significantly reduced retail participation. The last major spike in currency deposits occurred in January 2025, when XRP approached the $3 level. Binance remains the primary exchange powering transaction activity.
XRP is struggling to regain key resistance as the downtrend continues
XRP continues to trade around the $1.40 level after a prolonged correction that has defined its price structure since late 2025. The daily chart shows the asset trying to stabilize after a sharp sell-off that pushed prices down from above $2.30 towards $1.20-$1.30 earlier this year.
The broader technical structure remains bearish. XRP has consistently traded below its major moving averages, including the 50-day, 100-day, and 200-day trends, all of which are now sloping downward. This alignment typically reflects continued selling pressure and a lack of strong bullish momentum.
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Recent price action shows that the $1.30 to $1.35 zone is currently acting as short-term support. Buyers stepped in after February’s capitulation briefly pushed XRP near the $1.20 zone, triggering a recovery that took the asset back towards the $1.40 zone.
However, upward attempts remain limited. The declining 50-day moving average near $1.60 now represents the first meaningful resistance level. A recovery above that zone would indicate improving momentum and could allow XRP to test the $1.80-$2.00 range.
Featured image of ChatGPT, chart from TradingView.com