XRP DEX Hits 954K Transactions as Price Faces Selling Pressure

The XRP Ledger’s native decentralized exchange (DEX) just hit an all-time high of 954,000 daily transactions on November 4, according to on-chain ￰0￱ this activity marked one of the busiest days in recent months for the network, the market performance of its associated XRP token presents a different ￰1￱ XRP DEX Activity Fails to Lift Price At first glance, the increase in the number of transactions appeared to signal stronger network health and adoption within the XRP ecosystem. However, a closer look showed a worrying ￰2￱ to analyst CryptoOnchain, unlike another surge in usage in July, which coincided with a major price jump, the latest record came as XRP’s price fell from the $3 range in early October to around $2.21 at the time of this ￰3￱ divergence between transaction growth and market value suggests the high volume may not come from genuine buying interest.

Instead, the market watcher pointed to potential “large-scale selling, whale distribution, or automated arbitrage trading” as the real drivers of the ￰4￱ other words, traders may be using the DEX to rebalance or exit positions rather than accumulate tokens. “Elevated network activity is not always bullish,” cautioned CryptoOnchain, adding that investors should treat the mismatch between usage and price as a possible red flag. “Until price action aligns with on-chain growth, this metric should be viewed as a potential warning sign rather than a buy signal,” he ￰5￱ Reduce Exposure as Broader Market Wobbles Data from CoinGecko has confirmed XRP’s downward ￰6￱ asset has fallen 15.9% over the past week and 26% in the last month and was trading nearly 39% below its July all-time high of $3.65 at press ￰7￱ behavior also intensified the current market ￰8￱ CryptoPotato previously reported, large XRP holders sold roughly 900,000 tokens in just five days, contributing to the week’s double-digit slide.

On-chain data also indicates that while whale-to-exchange transfers have slowed since late October, recent selling may still be weighing on ￰9￱ XRP is not ￰10￱ broader crypto market suffered heavy losses as well, with Bitcoin (BTC) dropping below $99,000 for the first time in five months and Ethereum (ETH) slipping under $3,200. In total, over $1.75 billion in leveraged positions were liquidated within 24 hours, with $38.6 million tied to ￰11￱ the general gloom, analyst Egrag Crypto argued on X that XRP’s “stronger resilience” compared to Bitcoin and Ethereum could mark the end of the ￰12￱ pointed to a potential “accumulation zone” around $1.94, suggesting the current weakness might be the last shakeout before recovery.

However, market confidence is still an issue, and the decline is being reflected in CoinMarketCap’s Fear & Greed Index, which recently dropped to 20, its lowest level in months.