- XRP Ledger’s DEX activity hit a record high, signaling major network engagement and growing ecosystem usage.
- An analyst warns that rising on-chain activity may not reflect genuine demand, hinting at potential whale or arbitrage moves.
Transaction activity on the XRP Ledger-based decentralized exchange (DEX) suddenly surged sharply, hitting a new record high of 954,000 transactions.
This record immediately shocked the community, as it marked the most active day in recent months. Many initially assumed the surge was a sign of optimism for XRP’s future. However, is it really that simple?
XRP Faces Technical Pressure Despite On-Chain Buzz
In fact, according to analyst CryptoOnchain on CryptoQuant, this surge did not coincide with a price rally. Quite the opposite. When transactions spiked last October, the price of XRP actually dropped from around $3.0 to around $2.3.
At this point, some traders began to become anxious. Was this a sign of distribution by whales? Or was it just massive arbitrage from bots exiting positions?
Source: CryptoQuantOn the other hand, technical analyst Lingrid assessed that XRP was still under pressure from the previous double top pattern. The price is now continuing to form lower peaks, following a fairly strong downtrend line.
The recently formed technical triangle area had offered some hope, but instead of breaking above, the price fell below it. This structure has now transformed into new selling pressure.
Source: Lingrid on TradingViewAccording to Lingrid analysis, price has failed to quickly maintain above the $2.70 area, making it slide towards $2.20. This is certainly somewhat discouraging news for those still hoping for a short-term recovery. But does all this mean XRP has completely lost momentum?
Fundamentals Still Moving Behind the Scenes
While short-term pressure still looms, several fundamental factors point in the opposite direction. CNF previously noted that Ripple continues to expand its foothold in the institutional sector.
The acquisition of Palisade and the expansion of the Ripple Prime service are strong signals that XRP is being secured as part of a more decentralized financial infrastructure of the future.
Furthermore, Ripple’s move also demonstrates a real effort to strengthen XRP’s real-world utility, especially for financial institutions. This means that despite the sluggish price, XRP’s utility and adoption are actually growing behind the scenes.
Furthermore, there’s another development that has been overlooked. Canary Capital is known to have proposed changes to its spot XRP ETF proposal, which could potentially enter the automatic approval path around November 13th.
This auto-effective mechanism can occur if Nasdaq does not receive comments from regulators within 20 days of the filing. If there are no objections, the XRP ETF launch can occur without requiring a direct green light from the SEC.
Meanwhile, as of press time, XRP is trading at about $2.25. Up 3.50% over the last 4 hours, with $2.93 billion in daily trading volume.
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Source: https://www.crypto-news-flash.com/xrp-dex-explosion-raises-doubts-about-true-market-strength/?utm_source=rss&utm_medium=rss&utm_campaign=xrp-dex-explosion-raises-doubts-about-true-market-strength
