Ripple’s cross-border token has stagnated around $1.10 ever since it defended the $1.00 support a few weeks ago during the darkest hours of the overall market’s crash.

Worrisome on-chain data shows that the demand for the XRP Ledger has dwindled lately, but other factors are at play for Ripple and its token. The question now is whether a new rally is brewing.

XRP Network Activity Plummets

CryptoPotato reported that, after the first quarter of the year, network activity on Ripple’s XRP Ledger had rocketed throughout the period despite the painful price performance of the native token. Messari’s report at the time indicated that there were still strong network fundamentals, including stablecoin adoption, real-world tokenization, and transaction activity, which were all showing solid increases.

However, more recent data from Santiment Intelligence shows a major shift. XRP Ledger activity has “gone unusually quiet” in recent weeks, while the token’s price fails to break out of the $1.05-$1.15 range.

The network registered only 25,350 wallets, which became the second-lowest day of the year. New wallet creation dropped to 2,130, the lowest level in almost two years.

“After late-June dip-buying excitement, this looks like traders are waiting for a real catalyst instead of chasing another small bounce,” said Santiment.

Nevertheless, the company remains optimistic about XRP’s future due to other ecosystem factors. It added that XRP still has several “potential sparks beyond” price alone, such as RLUSD’s growth, tokenized-asset activity, and institutional payment use cases. All of these, combined with possible lending tools, could “bring users back on-chain if momentum improves.”

Key Macro Support Zone

Meanwhile, popular crypto analyst and long-term XRP bull, EGRAG CRYPTO, weighed in on the asset’s short-term potential, explaining that it is currently trading inside what has historically been one of its most important accumulation zones. It stretches between $0.85 and $1.20.

EGRAG argued that this range has repeatedly acted as macro support during previous market cycles, but still believes that a dip to $0.85 is in the cards. Nevertheless, even if XRP drops to that level, which would be a new multi-year low, the analyst expects it to bounce and keep the broader bottoming structure intact.

On the other hand, EGRAG added that the first major resistance in XRP’s path forward is at $1.65. If broken, the token can head toward $3.00-$3.50. The ultimate goal, according to this analysis, would be $15, described as “the full cycle expansion target,” but it sounds rather far-fetched at the moment.

Source: CryptoPotato