XRP has been trading under pressure in recent weeks, losing much of the momentum it built during its late 2024 to early 2025 rally. After reaching highs above $3.40, the asset has experienced an 18.3% decline over the past month, reflecting broader market softness.<\/p>\n
At the time of writing, XRP trades significantly below its peak at a price of $2.06, with subdued investor activity and falling market participation across both spot and derivatives markets.<\/p>\n
Amid XRP\u2019s decline, a CryptoQuant analyst known as EgyHash has recently shared his analysis<\/a> on the altcoin in a post titled, \u201cXRP\u2019s Market Paradox: With Ledger Activity Dipping 80%, Is a Rebound on the Horizon?\u201d<\/p>\n According to EgyHash, XRP\u2019s on-chain and futures market data presents a mixed picture<\/a>\u2014declining activity but resilience in price. EgyHash noted that XRP Ledger activity has fallen sharply since December, with the percentage of active addresses down by 80%.<\/p>\n Similar declines have been observed in the futures market<\/a>, where open interest has dropped roughly 70% from its highs, and funding rates have occasionally turned negative.<\/p>\n He added that the Estimated Leverage Ratio, which gauges average user leverage by comparing open interest to coin reserves, has also dropped significantly.<\/p>\n Despite these indicators pointing to weakening momentum, the altcoin\u2019s price has only declined about 35% from its peak. This is a milder correction<\/a> compared to other assets such as Ethereum, which has fallen roughly 60% over the same period.<\/p>\n Additionally, the altcoin\u2019s Exchange Reserve has continued to decline, reaching levels last observed in July 2023. Lower reserves typically suggest that fewer tokens are available for immediate sale, a factor that can help support prices during market downturns<\/a>.<\/p>\n According to EgyHash, this trend, along with relatively stable pricing, could indicate growing long-term confidence in the asset.<\/p>\n While on-chain metrics remain a focus, institutional developments may also play a role in shaping XRP\u2019s future trajectory. Hong Kong-based investment firm HashKey Capital recently announced<\/a> the launch of the HashKey XRP Tracker Fund\u2014the first XRP-focused investment vehicle in Asia.<\/p>\n Backed by Ripple as the anchor investor, the fund is expected to transition into an exchange-traded fund (ETF) in the future. The initiative is designed to attract more institutional capital into the XRP ecosystem.<\/p>\n HashKey Capital is launching Asia\u2019s first XRP Tracker Fund\u2014with @Ripple<\/a> as an early investor.<\/p>\n This marks a major step in expanding institutional access to XRP, the third-largest token by market cap. <\/p>\nInstitutional Developments Could Strengthen Market Sentiment<\/h2>\n