XRP traded near $2.13, down close to 2%, even as several leading cryptocurrencies posted gains. Analysts note a visible rotation into high-momentum assets such as Solana, Ethereum and meme-tokens, drawing speculative capital away from slower-moving coins. This shift has pressured XRP’s short-term performance and reinforced a trend of relative weakness against the broader crypto market.

Network Activity Declines and Sparks Utility Concerns

A sharp pullback in XRP’s network activity, following prior transactional spikes, has raised questions around organic demand. Analysts argue that abrupt swings in transactions can reflect synthetic activity rather than real economic usage. For sentiment to improve, traders are watching for consistent daily transactions to signal renewed network utility.

Technical Indicators Turn Bearish Across All Moving Averages

XRP’s technical outlook remains weak. The token sits below every major moving average, including the SMA-20 at $2.1388, SMA-50 at $2.3050, and SMA-200 at $2.6137. All listed moving averages reflect a bearish alignment, indicating continued downward pressure. Momentum also remains soft, consistent with a market favoring cautious positioning and low confidence in short-term upside.

Whale Transfers and Regulatory Delays Add Mixed Signals

On-chain data shows large XRP transfers between major exchange wallets, which traders interpret as possible liquidity shifts and increased circulating supply. At the same time, interest in XRP ETFs remains steady, though regulatory timelines continue to lag behind other large-cap digital assets. According to analyst Viktoras Karapetjanc, regulatory stagnation and weak on-chain engagement continue to weigh on XRP’s sentiment relative to peers.

Outlook: Can XRP Reclaim Short-Term Levels?

For XRP to regain momentum, analysts are watching whether it can stabilize above the SMA-20 and push toward prior short-term levels near $2.20. A rebound in network activity, along with clearer progress in institutional-grade products, would be needed to improve XRP’s market alignment. Until then, the coin may continue to lag higher-momentum digital assets during rapid market cycles.

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