TL;DR

XRPs recent dip comes alongside a drop in key on-chain metrics like active accounts and executed transactions hinting at declining user engagement and a potential short-term correction.

Despite the concerns, optimism remains high as Polymarket gives a 92% chance for a spot XRP ETF approval by end-2025, while negative exchange netflows suggest reduced immediate selling pressure.

Pullback on the Horizon?

Ripples XRP started July on the right foot, with its price rising to as high as $2.30. The uptrend, however, was short-lived, and it currently trades at around $2.17 (according to CoinGeckos data).

Meanwhile, the decline of certain XRP metrics suggests the assets investors may have to endure a more substantial correction in the near future. Data shows that the number of active accounts, the number of executed transactions, and the number of newly activated accounts have headed south in the past few days.

This development points to reduced user engagement and utility in XRPs ecosystem, which may lead to price stagnation or even a pullback. 

Interest in Ripples cross-border token has also waned over the past several months. Google searches involving the asset are currently far below the peak levels registered in December last year. This could mean that fewer new buyers are entering the market.

XRP Google Searches, Source: Google Trends

The Bullish Signals

Every coin has two sides, so lets also observe the factors that suggest Ripples native token might be on the verge of a renewed rally.

To begin with, XRP investors could gain significantly if a spot ETF receives regulatory approval in the United States. A growing list of major firms such as Grayscale, Bitwise, Franklin Templeton, 21Shares, and others have already expressed interest in launching such a product.

According to Polymarket, theres a 92% chance that a spot XRP ETF will be greenlighted in America before the end of 2025.

XRP ETF Chances, Source: Polymarket The surge in odds follows the SECs recent approval of Grayscales request to convert its Digital Large Cap Fund (GDLC) into a spot ETF a fund that holds multiple cryptocurrencies, including XRP.

Next on the list is XRPs exchange netflow, which has been predominantly negative in the last several weeks. This indicates that investors have switched from centralized platforms toward self-custody methods, reflecting a reduced immediate selling pressure.

XRP Exchange Netflow, Source: CoinGlass