The XRP Ledger’s native decentralized exchange (DEX) recently hit a new milestone, recording an all-time high of 954,000 daily transactions on November 4, according to on-chain data. This surge marked one of the busiest days for the network in recent months, signaling heightened activity within the XRP ecosystem.
However, despite this impressive spike in transaction volume, the market performance of XRP—the digital token associated with the ledger—painted a contrasting picture.
### Record XRP DEX Activity Fails to Lift Price
At first glance, an increase in daily transactions often suggests stronger network health and growing adoption. Yet, a closer examination reveals a concerning divergence between activity and price performance.
Analyst CryptoOnchain noted that unlike a similar surge in usage back in July, which accompanied a significant price increase, the latest record-breaking transaction volume coincided with a price decline. Since early October, XRP’s price has dropped from the $3 range to approximately $2.21 at the time of writing.
This disconnect between transaction growth and market value implies that the high volume may not reflect genuine buying interest. Instead, CryptoOnchain pointed toward possible explanations such as “large-scale selling, whale distribution, or automated arbitrage trading” driving the activity. In other words, traders might be using the DEX primarily to rebalance or exit positions rather than to accumulate tokens.
“Elevated network activity is not always bullish,” cautioned CryptoOnchain. He urged investors to approach this mismatch between usage and price with caution, stating:
> “Until price action aligns with on-chain growth, this metric should be viewed as a potential warning sign rather than a buy signal.”
### Whales Reduce Exposure Amid Broader Market Wobbles
CoinGecko data confirms XRP’s downward trajectory, showing the asset has declined 15.9% over the past week and 26% in the last month. At press time, XRP was trading nearly 39% below its July all-time high of $3.65.
Whale behavior has intensified the current market volatility. As previously reported by CryptoPotato, large XRP holders sold approximately 900,000 tokens in just five days, contributing significantly to the week’s double-digit price slide.
On-chain data further indicates that although whale-to-exchange transfers have slowed since late October, recent selling activity might still be dampening market sentiment.
XRP’s struggles are reflective of broader market challenges. Bitcoin (BTC) recently dropped below $99,000 for the first time in five months, while Ethereum (ETH) slipped under $3,200. In a single 24-hour period, more than $1.75 billion worth of leveraged positions were liquidated, with $38.6 million attributed to XRP alone.
### Signs of Potential Recovery Amid Market Gloom
Despite the prevailing bearish sentiment, some analysts remain cautiously optimistic about XRP’s prospects. Analyst Egrag Crypto shared on X that XRP’s “stronger resilience” relative to Bitcoin and Ethereum might indicate the selloff is nearing its end.
He highlighted a potential “accumulation zone” around $1.94, suggesting that the current weakness could be the final shakeout before the price begins to recover.
However, overall market confidence remains fragile. This uncertainty is mirrored in CoinMarketCap’s Fear & Greed Index, which recently plummeted to 20—its lowest level in months.
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**In summary**, while the XRP Ledger’s DEX continues to see record activity, the associated XRP token’s price struggles highlight a disconnect that investors should watch closely. Elevated transaction volumes do not always equate to bullish momentum, especially amid large-scale selling and broader market downturns. Keeping an eye on on-chain metrics alongside price action can provide valuable insights into XRP’s trajectory moving forward.
https://bitcoinethereumnews.com/tech/xrp-dex-hits-954k-transactions-as-price-faces-selling-pressure/