Ripple
XRPL taps new milestones as XRP faces an uncertain future
Posted:
| Last updated: February 6th, 2024
Journalist
- The monthly transaction volume on XRP Ledger has touched an all-time high.
- Negative sentiment has continued to trail XRP, causing a further decline in value.
The XRP Ledger [XRPL] has reached a new all-time high in monthly transaction volume, as measured in XRP, according to The Block Data dashboard.
Source: The Block Data dashboard
With only eighteen days into January, the total value moved in XRP transactions on the open-source and decentralized blockchain has amounted to 673.49 billion.
This boom in XRPL’s network activity comes amid an attempted hack on cryptocurrency exchange Bitfinex on 14th January.
AMBCrypto reported that the hacker attempted to hack the exchange through the “Partial Payments Exploit” feature to transfer 25.6 billion XRP tokens. However, the exploit failed because Bitfinex had properly configured its software to process partial payments.
XRP bears the brunt
Following the incident, XRP witnessed a surge in negative sentiment. According to data from Santiment, the token’s weighted sentiment plummeted to a multi-month low of -1.58 on 14th January.
Source: Santiment
Since then, daily demand for XRP has plummeted. According to the on-chain data provider, the number of daily unique addresses that have since been involved in XRP transactions has plunged by 31%.
As of 17th January, 32,779 active addresses traded the altcoin.
Regarding new demand for the crypto asset, this has also witnessed a decline. In the past five days, the number of new addresses created daily to transact XRP has dipped by 34%, data from Santiment showed.
Source: Santiment
The decline in XRP’s network activity in the past few days has manifested as dwindling momentum indicators on a daily price chart.
For example, XRP’s Relative Strength Index (RSI) and Money Flow Index returned values of 40.71 and 41.01, respectively, at press time.
These values showed that XRP sell-offs exceeded accumulation among daily traders as negative sentiment grew stronger.
Further, the fall in the token’s On-Balance-Volume (OBV) confirmed the decline in XRP accumulation. Since the attempted exploit, XRP’s OBV has tumbled by 1.4%. As of this writing, the alt’s OBV was 30.14 billion.
Source: TradingView
Per data from CoinMarketCap, XRP’s value has dropped by 4.26% in the last week. Declining OBV alongside the falling price confirmed the downtrend and the presence of strong selling pressure.
Due to the falling price and rising negative sentiment, more XRP transactions are now occurring at a loss than a profit.
Read Ripple’s [XRP] Price Prediction 2024-2025
AMBCrypto found that the ratio of XRP daily transaction volume in profit to loss assessed on a seven-day moving average was 0.96.
This meant that for every XRP transaction that ended in a loss, only 0.96 transactions returned a profit.
Source: Santiment
