5 facts why a spike in XRP activity may not guarantee a price increase

Updated

December 8, 2025

Gambar 5 facts why a spike in XRP activity may not guarantee a price increase

Jakarta, Pintu News – Developmentson the XRP network have recently caught the attention of market participants once again. According to crypto media reports, the token’s on-chain activity is said to have approached a “400%” spike in the past three months – but network volume anomalies and stagnant prices raise important questions about its true impact on valuation. Here are five key points worth noting.

XRP Transaction Activity Surges, Volume & Throughput Steal the Show

According to the latest public data, the number of payments, transactions between accounts, and daily transaction throughput on the XRP network grew significantly in the past three months.

This increase in volume suggests that more transfers and value movements are taking place in the XRP ecosystem – which for some analysts is an important metric of the network’s adoptability. However, this surge in activity has not seen the token price rise significantly, suggesting that not all on-chain usage means strong market demand.

Also Read: 5 Important Facts from Bitcoin’s (BTC) Latest Prediction: US$125,000 Target?

XRP Price Still Trapped in Down Channel Despite Rising Activity

Despite increased activity on the network, XRP’s price structure shows a bearish trend. The short- to medium-term moving averages (20-, 50-, 100-, 200-day) are still pointing down, signaling that resistance continues to hold back price recovery attempts.

The emergence of large transaction volumes is many times not accompanied by price breakouts – this according to analysts suggests that much of the activity on the network may come from internal flows, arbitrage, or institutional routing, rather than the accumulation of retail investors.

On-Chain Surge Doesn’t Automatically Become Market Demand

The analysis in the report mentions that the growth of network metrics often fails to reflect real market demand. Activity may increase through automated mechanisms, rather than by active token purchases.

This suggests that on-chain metrics, while interesting as indicators of network adoption, are not always suitable as direct proxies for price projections in the short or medium term.

Risk Persists Due to Technical Structure and Market Psychology

With a falling moving average and strong resistance, XRP faces technical structural challenges. Investors and traders need to realize that despite increasing volumes, the market could remain sluggish if there are no new fundamental catalysts such as institutional adoption or supportive regulation.

Cryptocurrency markets are notoriously sensitive to sentiment and liquidity; without confirmation that on-chain activity is accompanied by real buying interest, price rallies are hard to come by.

The “Top Crypto in the Eyes of the Public and Institutions” Factor Can Continue to be Monitored, But with Caution

The rise in network activity shows that XRP remains one of the top cryptocurrencies that investors and institutions are monitoring as a utility asset, not just speculation. For those paying attention to long-term metrics, this data signals that the network remains active and in use.

However, current market conditions suggest that the way forward should be selective – as volume alone is not enough to guarantee a price increase. A combination of utility, real adoption and market sentiment remain important metrics.

Also Read: 10 Ways to Learn Crypto from Zero: Basic Guide to Start Investing Safely

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ

What does a 400% spike in XRP network activity mean?

That figure refers to an increase in total payment volume, number of transactions between accounts, and daily transaction throughput over the previous summer baseline, indicating that the network is more active.

Why hasn’t the price of XRP risen despite increased activity?

Since most activity is triggered by automated flows – arbitrage or institutional routing – rather than active token purchases by investors, it does not increase market demand.

Do on-chain metrics always reflect the health of a crypto project?

Not always. While metrics such as transactions and throughput are important for network adoption, they do not necessarily signify market demand or long-term investor interest.

What technical indicators are showing pressure on XRP right now?

The medium- to long-term moving averages (50-, 100-, 200-day) show a downtrend, and the price continues to fail to break the moving averages, signaling a bearish mood.

Who is this data relevant for?

This data is important for both institutional and retail investors who are monitoring network utility, long-term adoption, and potential token distribution rather than just quick price speculation.