XRP has seen a drastic drop in on-chain volume, with payments falling from 1.1 billion to just 100 million. This sharp decline raises concerns about the asset’s liquidity and the overall health of the market. However, despite this significant decrease, XRP’s price has remained relatively stable, hovering around the $3.10 mark.
Following a strong breakout earlier this year, XRP has managed to maintain its bullish momentum. The asset is currently trading above key moving averages, including the 50 EMA, indicating sustained strength. Although transaction volume has declined, XRP has shown resilience, suggesting that investor sentiment remains positive.
Looking ahead, resistance levels at $3.20 and $3.50 will be crucial in determining the next potential upward move. If XRP successfully breaks through these barriers, it could inch closer to the $4 mark. Conversely, support at $2.86, which aligns with a major moving average, serves as a critical downside level. A failure to hold this support could lead to a more substantial retracement.
One of the most striking changes in XRP’s network activity is the dramatic reduction in on-chain payments. Just weeks ago, the network was processing over one billion transactions, whereas it now handles only around 100 million. Given XRP’s historical use in institutional and remittance transactions, this decline might indicate a slowdown in those sectors.
Additionally, the number of active accounts on the XRP Ledger has dropped, hinting at reduced network engagement. While this does not necessarily signal a bearish turn for the asset, it does suggest that XRP’s ecosystem may be experiencing a cooling-off period.
Despite the decline in transaction volume, XRP’s price stability indicates strong speculative interest. If on-chain activity recovers, it could further reinforce bullish momentum. However, a continued drop in volume might suggest waning demand, potentially leading to increased price volatility. Investors will be closely watching XRP’s transaction trends in the coming weeks to gauge its next move.