Ripple (XRP) Transaction Fees Drop 89%: Will the Price Fall Below $1.75?
Ripple's price faces a risk of falling by up to 15%, dropping to $1.73, driven by factors including a collapse in transaction fees, weakened investor interest, and a weakening technical structure.
Analysts indicate that before Ripple's retreat from $2, transaction fees have significantly declined, which may prompt a deeper price correction.
Key Information:
Ripple transaction fees have dropped to 650 XRP per day, the level since December 2020.
The target for Ripple's descending triangle is $1.73.
Ripple Transaction Fees Hit Five-Year Low
According to on-chain data provider Glassnode, since the beginning of the year, the total daily transaction fees on the Ripple Ledger (XRPL) have significantly declined.
In a post on X on Thursday, Glassnode stated that the total daily fees paid in Ripple have dropped from 5,900 XRP per day on February 9 to approximately 650 XRP per day, adding:
"This marks an 89% drop, returning to levels since December 2020."
The decline in transaction fees coincides with a sharp decrease in Ripple futures open interest (OI), which has dropped from 1.75 billion XRP in early October to 740 million XRP, a 59% reduction.
Coupled with the funding rate falling from 0.01% (7D-SMA) to 0.001%, this indicates that derivative traders' confidence in Ripple's ability to rebound is weakening.
As reported by Cointelegraph, market sentiment towards Ripple has fallen into the "fear zone," the highest level of FUD since early October. Some analysts suggest that such a decline could be a precursor to a significant price rebound for Ripple, similar to past situations.
Ripple's Descending Triangle Points to $1.73
The technical chart of Ripple/USD also shows that if a descending triangle pattern completes, there is a potential risk of further decline.
The chart below shows that if the price breaks below the $2 triangle support line, there is a greater downside risk.
The measured move target of this pattern (calculated by adding the height of the triangle to the breakout point) is $2.20, a 15% drop from the current price.
As reported by Cointelegraph, the area between $2 and $1.98 remains a key support zone for Ripple, and holding this range is crucial to avoid a further decline to $1.61.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Although we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph shall not be liable for any losses or damages arising from your reliance on this information.
