XRP traded mostly sideways on Friday after a volatile stretch across the crypto market that left traders uncertain about the next move.
Notably, the crypto asset has fallen nearly 4% over the past week as a wider market downturn continued to weigh on major digital assets.
Meanwhile, according to CryptoQuant analyst CryptoOnchain, XRP processed more than 2.8 million transactions on August 5, an 86% jump from the previous week and more than 81% above its 30-day average.
The increase was not limited to a single day, with transaction counts remaining elevated throughout the week between 1.3 million and 2.8 million. As a result, the seven-day average climbed well above the network’s six-month average of 1.83 million transactions.
Additionally, the rise in network usage was accompanied by stronger participation across the XRP Ledger. CryptoQuant data showed active XRP addresses climbing from 23,642 on August 1 to 43,543 by August 11, an increase of roughly 84%. That suggests more users are interacting with the XRP Ledger even as the token struggles to regain upward momentum.
 
At the same time, CryptoOnchain reported that Binance deposit addresses fell about 96% compared with their monthly and quarterly averages, while XRP inflows to Binance dropped 79% and outflows fell 85% relative to their 90-day averages, a divergence that could signal easing selling pressure even as price remains weak.
Open interest fell from about $403 million on July 28 to $391 million by August 8, leaving it near its lowest level in six months. The leverage ratio also dropped from 0.190 to 0.150, indicating that traders are relying less on borrowed money.
On August 7, roughly $3.4 million in long positions were liquidated as XRP briefly slipped toward $1.02. Funding rates turned positive again the next day at +0.008, suggesting that many overleveraged positions were cleared out without sparking broader panic in the market.
CryptoOnchain described the setup as a “classic bottom-building signature,” where growing utility and shrinking exchange flows may indicate quiet accumulation rather than continued capitulation.
However, stronger on-chain activity does not guarantee an immediate rebound. If broader market weakness continues, XRP could still come under pressure and potentially fall below $1.
At press time, XRP was trading at $1.00, down 0.93% over the past 24 hours.
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