XRP’s network activity has fallen sharply after a late-January burst that briefly pushed daily payment volume above 2 billion XRP. Data cited from the XRP Ledger shows that transaction flow cooled quickly after that spike, with activity later dropping by about 95% from the peak. Because XRP was already sliding when the jump occurred, the surge is being framed less as a sign of fresh demand and more as evidence of redistribution and liquidation by large holders.
A 2 billion XRP payment spike did not arrive with price strength
That distinction matters. A sudden rise in transfers can sometimes point to stronger network use, but the backdrop here was different: XRP had already been losing ground and had fallen to levels not seen since its previous recovery cycle. In that setting, the jump in payment volume looked less like organic growth and more like holders moving coins aggressively during a selloff.
The pattern fits a market under stress. Activity accelerated fast, then faded just as quickly. Rather than confirming optimism, the move added to the view that panic selling and position reshuffling were driving the tape.
Why a 95% slowdown may not be entirely negative
On the surface, a collapse in activity looks troubling. Still, the report argues that the slowdown could also mean the harshest phase of selling has already passed. If large holders are no longer unloading positions at the same pace, the market may be moving away from panic-driven bursts in volume. XRP remains in a downtrend, and that has not changed. But the frequency of those stress spikes has eased, while key momentum indicators are said to be moving into oversold territory.
That does not confirm a bottom. It does suggest exhaustion may be building, which could mean any additional downside is less violent than what came before. A more stable level of network activity would be one condition for recovery, though the article stops short of treating that as proof that a rebound is underway.
EGRAG Crypto flags a possible “exit pump” for holders
Attention is also on what comes next for traders managing XRP positions. As cited by 36Crypto, market strategist EGRAG Crypto said holders should watch for a possible “exit pump” in the next cycle. He pointed to a blue support channel on XRP’s chart as a key guide for whether the asset can stage a meaningful rally or remain trapped under pressure.
His warning was straightforward: if the broader market stays bearish, the next sharp rise in price could become a last strong chance for profit-taking before another leg lower. For XRP holders, the coming weeks may matter less for storytelling and more for execution, with price behavior around that support structure likely to shape decision-making.