XRP Ledger Active Users Jump 166.5% as Account Creation Slumps 25.9%

Ledger Activity Diverges Sharply

XRP Ledger is showing a striking divergence in its latest on-chain metrics: while the number of active users surged 166.5% to roughly 489,500, newly created accounts fell 25.9% to about 1,500 over the same period. Payments also dropped 31.6% to roughly 440,000, confirming that the spike in network interactions is not being driven by traditional XRP transfers. This pattern suggests that automated infrastructure and applications are producing significantly more ledger interactions even as the base of persistent, manually-created accounts contracts. On-chain data shows the total transaction flow tells a different story, with the network processing roughly 2.1 million transactions, a 38.5% increase, while successful transactions rose 65.5% to 1.9 million.

Institutional Short Hedges Hit $1.38B

Amid this network activity shift, major market makers have locked in over $1.3 billion in short hedges across XRP, Bitcoin and Ethereum on the Hyperliquid platform. Derivative positioning data indicates Abraxas Capital Management maintains the largest position with a $783 million short portfolio, while Wintermute controls a $190.8 million short book. Wintermute's leadership has clarified these positions represent neutral inventory management and premium collection rather than a bearish directional bet, essentially executing a cash-and-carry basis trade by shorting perpetual futures while holding the underlying spot asset to capture annualized returns.

ETF Inflows Reach $1.51B Milestone

Separately, cumulative net inflows into U.S. spot XRP exchange-traded funds have reached approximately $1.51 billion, with total net assets now sitting near $940 million after Friday's flow data showed roughly $18 million in new capital led by Bitwise, Grayscale and Franklin. This marks a rebound from a rougher stretch earlier in August when weekly inflows collapsed about 93% to just $1.01 million. The ETF complex's steady accumulation continues to underpin the token's recent 45.6% seven-day rally, which has taken XRP from the $1.00 area to its current trading range.

Price Action Depends on Post-Squeeze Demand

XRP's sharp move higher has largely been an amplified effect of Bitcoin's broader short squeeze, rather than an independent repricing driven by XRP-specific fundamentals. Analysts note that a short squeeze is inherently temporary, and once short positions are liquidated, forced buying stops. The critical question is whether genuine demand emerges to support the new price level or whether a pullback follows as artificial buying pressure dissipates. The token recently broke above its major moving averages, reaching as high as $1.70 before falling back to the $1.48 area, with trading volume increasing significantly during the breakout.

Key Support at $1.4753 in Focus

COINOTAG's proprietary 42-indicator composite scoring engine rates the $1.4753 support level at 83/100 (STRONG), driven by the confluence of Flip R→S, HVN, MACD Cross and POC sources, with secondary support at $1.3641 also scoring 83/100. Resistance at $1.6184 rates 68/100, supported by R2 and Fibo 0.114 sources. The derivatives market shows a funding rate of 0.0056%, open interest of $1.09 billion and a long/short account ratio of 2.78, with 73.5% of accounts long. The bullish scenario requires holding above $1.4753 to target the $1.6184 resistance, while a break below this level with the Fear & Greed Index at 73/100 could trigger a sharper correction toward $1.3641.