XRP Burn Rate Drops, Price Struggles to Break the $3 Level

What is the “burning reduction” of XRP?

In the XRP network, each transaction burns a small amount of tokens, which is a security mechanism designed to prevent abuse of the network. Recently, the daily burn rate of XRP has dropped sharply from over 4,000 tokens to around 700 tokens, indicating a significant decrease in transaction volume.

This sharp decline is often related to a decrease in network activity and reflects a temporary cooling in trading demand from users or institutions.

Why is it difficult for the price to break through 3 dollars?

The price of XRP has attempted to break through around $3 multiple times but has not succeeded, indicating a lack of sustained buying support in the short term. The main reasons include:

• Technical resistance is strong: $3 becomes a dual threshold both psychologically and graphically.
• Insufficient trading volume: A sharp decrease in burn means reduced active trading and a decline in market enthusiasm.
• Practical scenario stagnation: The growth of mainstream applications such as cross-border payments and bank settlements is slow, and market expectations are weakening.

For beginners, this indicates that while XRP has potential at the current stage, it lacks the momentum for a short-term breakout. If the market lacks substantial catalysts, the price may continue to fluctuate.

Three strategic tips for beginners

• Pay attention to changes in on-chain data: in addition to looking at prices, it is important to consider fundamental indicators such as burn rates, transaction counts, and active addresses. These are key signals for assessing market health.
• Understanding the use case is more important than watching the price: The core value of XRP lies in its actual use scenarios. Only when its payment network or institutional partnerships expand can the price gain long-term support.
• Set a clear action plan: if you believe that $3 is a key resistance, you can wait to intervene after a breakout; if it falls below the $2.35 support, consider reducing your position. Rationality is more important than emotion.

Overall, the sharp reduction in XRP burn and the price stagnation indicate that the market has entered a cooling period. Beginners can take this opportunity to learn and observe on-chain indicators and fundamentals, rather than blindly chasing after price increases.