Recent data paints a concerning picture for XRP, revealing a significant decline in activity across various metrics. Usage has plummeted by 80% from its December peak, marking the lowest point seen since early 2023. This trend extends beyond on-chain metrics; derivative markets like futures are also experiencing a cooldown with a drop of nearly 70% and funding rates dropping into negative territory, suggesting waning bullish sentiment among traders. Leverage use among XRP holders has weakened as well, indicating a shift towards more cautious positioning. However, this decline in activity is somewhat offset by a steady decrease in exchange-held XRP reserves which have fallen to levels last observed in July 2023. This suggests more users are opting for self-custody, a potentially optimistic signal for the future of XRP. While the current market sentiment remains bearish with XRP’s price dropping nearly 35% since December, this could represent a turning point. The combination of lower exchange balances and relatively stable prices might indicate underlying optimism among XRP holders, even in a challenging market.