## XRP Transaction Fees Plummet by 90%, What Signal Is the Market Sending?

**XRP Real-Time Data**
- Current Price: $2.06
- 24-Hour Change: -1.81%
- Circulating Market Cap: $124.74B
- 24-Hour Trading Volume: $91.22M

### On-Chain Activity Sluggish, Fees Hit Four-Year Low

The situation on the XRP Ledger is beginning to raise alarms. According to data tracked by Glassnode, the network’s daily generated transaction fees have been steadily declining. From a peak of 5,900 XRP/day in early February this year to the current 650 XRP/day, a drop of 89%, this is the lowest level since December 2020.

This situation reflects more than just a numerical decrease; it indicates a decline in overall network activity. Falling transaction fees suggest on-chain transaction volume is shrinking, and user transfers and interactions are noticeably slowing down. Previously active liquidity is quietly leaving.

### Derivatives Market Reveals the Truth: Traders Are Fleeing

Alongside the collapse in transaction fees, there is a large-scale withdrawal of futures market participants. Open interest has plummeted from 1.75 billion XRP in early October to 740 million XRP, evaporating 59% of positions in just three months.

Funding rates have also dropped from 0.01% to 0.001% (seven-day moving average). This shift indicates everything: derivatives traders’ expectations for a short-term rebound in XRP have almost disappeared. Leverage longs’ confidence is collapsing, and no one dares to add bullish positions at this point.

### Social Sentiment Reaches Extreme Levels, a Bottom Signal from a Historical Perspective

Market sentiment monitoring tools show that social discussions about XRP have fallen into the “fear zone,” hitting the deepest lows since October. This extreme negative atmosphere has often been associated with rapid price rebounds in the past.

When everyone is in fear, it usually indicates the market is approaching an extreme. But the current situation still requires technical confirmation.

### Technicals Face Tests, Support Levels Become Key Battlegrounds

After the Federal Reserve announced a 25 basis point rate cut last week, XRP’s price did not rise as expected but continued to weaken. Currently, XRP has fallen 1.81% and is approaching the critical support level at $2.00.

Noted technical analyst ChartNerd pointed out that the Relative Strength Index (RSI) is currently in an extremely compressed state, with the stochastic RSI already entering oversold territory. These indicators suggest the price has reached a certain critical point.

The analyst stated that if XRP further declines to the $1.90 support level, it should be viewed as a buying opportunity because the technicals have already fully released bearish momentum.

### Future Outlook: Is This the Bottom or Will It Drop Further?

The sharp drop in transaction fees, the rapid decrease in open interest, and extreme sentiment indicators together reflect that the market is currently experiencing a highly pessimistic phase. Such moments often breed reversals.

However, a reversal still requires volume confirmation and a breakthrough in technical support levels. The key levels at $2.00 and $1.90 will determine the short-term trend. If XRP manages to hold these lows, the accumulated negative sentiment may be setting the stage for the next rally.