XRP DEX reaches 954K trades as price is under selling pressure

The price of XRP has fallen to $2.21 despite record usage of XRPL’s native DEX, revealing a worrying market divergence.

According to on-chain data, the XRP Ledger decentralized exchange (DEX) just reached an all-time high of 954,000 daily transactions on November 4.

While this activity was one of the busiest days in recent months for the network, the market performance of the associated XRP token shows a different picture.

Record XRP DEX activity fails to boost price

At first glance, the increase in transactions seemed to indicate stronger network health and adoption within the XRP ecosystem. However, a closer look showed a worrying disconnect.

According to analyst CryptoOnchain, the latest record came in contrast to another surge in usage in July, which coincided with a major price increase, when the price of XRP fell from $3 in early October to around $2.21 at the time of writing. This difference between transaction growth and market value suggests that the high volume may not be driven by real buying interest.

Instead, the market watcher pointed to potential “large-scale selling, whale distribution or automated arbitrage trading” as the real drivers of the activity. In other words, traders can use the DEX to rebalance or exit positions instead of accumulating tokens.

“Increased network activity is not always bullish,” CryptoOnchain warned, adding that investors should consider the discrepancy between usage and price as a potential red flag.

“Until price action is in line with on-chain growth, this measure should be viewed as a potential warning signal rather than a buy signal,” he wrote.

Whales reduce exposure as the broader market falters

Data from CoinGecko has confirmed XRP’s downward trajectory. The asset is down 15.9% over the past week and 26% over the past month, trading nearly 39% below its all-time high in July of $3.65 at the time of writing.

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The whale behavior has also amplified the current market turbulence. As CryptoPotato previously reported, large XRP holders sold around 900,000 tokens in just five days, contributing to the week’s double-digit decline. Data from the chain also indicates that while transfers of whales to the exchange have slowed since late October, recent sales may still weigh on sentiment.

But XRP is not alone. The broader crypto market also suffered heavy losses, with Bitcoin (BTC) falling below $99,000 for the first time in five months and Ethereum (ETH) falling below $3,200. In total, more than $1.75 billion in leveraged positions were liquidated within 24 hours, with $38.6 million tied to XRP.

Despite the general gloom, analyst Egrag Crypto says argued on X that XRP’s “stronger resilience” compared to Bitcoin and Ethereum could mark the end of the sell-off. He pointed to a potential “accumulation zone” around $1.94, suggesting the current weakness could be the final shakeout before a recovery. However, market confidence is still an issue, and the decline is reflected in CoinMarketCap’s Fear & Greed Index, which recently decreased to 20, the lowest level in months.