XRP's on-chain metrics are showing conflicting signals as the cryptocurrency experiences price volatility below the $1.40 level. According to data from crypto analytics platform CryptoQuant, the XRP burn rate has surged by approximately 27.82% over the last 24 hours, reaching about 519 XRP burned as fees as of March 8.
This significant increase in burn activity typically indicates growing network usage for payment purposes, which could signal underlying demand despite the price decline. Analysts suggest this metric often precedes price increases, potentially indicating XRP is preparing for a major comeback.
However, other network metrics tell a different story. The daily number of active addresses on the XRP network has fallen to 14,809, marking the lowest level since February 22. This decline in active addresses suggests reduced network activity and potentially fading momentum, which could create additional downside pressure for XRP's price.
Price-wise, XRP has retreated to $1.35 as of writing time, representing a 1.01% decline over the last day. The cryptocurrency recently surged near $1.50 during a rally but has since fallen below the $1.40 zone, creating uncertainty among smaller investors. Despite this, some signs suggest a potential recovery as XRP has moved from its intraday low of $1.33 to trade around $1.36.
Institutional demand has also shown weakness, with XRP ETFs closing last week with a daily outflow of over $16 million. This contrasts with other major cryptocurrencies like Ethereum and Solana, which are showing daily price gains of about 3-4%.
The mixed signals create an uncertain outlook for XRP. While the burn rate surge suggests growing utility and potential price support, the declining active addresses and institutional outflows indicate weakening short-term momentum. Market participants are watching closely to see which trend will dominate XRP's near-term price action.
