What to Know:
- XRP’s payment volume has dipped below one billion, signaling reduced transactional activity.
- The decline in on-chain activity suggests a potential pause in institutional usage of XRP.
- Investors should anticipate sideways to downward movement unless XRP regains transactional traction.
XRP’s on-chain activity has recently shown a concerning trend, with payment volumes falling below the one billion mark, a key indicator of network utility. This decline highlights a potential slowdown in transactional momentum and raises questions about the short-term prospects for XRP. The drop coincides with weakening price movement, adding to investor concerns.
On-chain data reveals a gradual decrease in both total transfer volume and the number of executed transactions since late October. Historically, a cooling off in network utility has been indicated when XRP payment volume falls below the one billion threshold. This suggests fewer inter-account transfers and decreasing transactional throughput throughout Ripple’s ecosystem.
In terms of price, XRP is currently trading around $2.17 and struggling to hold onto important support levels. The daily chart shows a sharp decline, with the 200-day EMA acting as solid resistance. The RSI is near 35, suggesting strong bearish pressure but also hinting at a slightly oversold condition that might trigger a technical recovery.
The decline in on-chain activity also suggests that institutional usage, often cited as XRP’s primary driver, might be temporarily pausing. Expectations in the near future are muted due to a combination of deteriorating fundamentals and ongoing selling pressure. A significant shift in market sentiment is unlikely unless XRP can regain transactional traction and maintain payment volumes above $1 billion.
While XRP remains a prominent digital asset, its current trajectory appears stagnant. Investors should prepare for continued sideways to downward movement in the coming weeks. A potential recovery hinges on regaining the lost billion-level milestone in payment volumes or a significant resurgence in transactional demand.
Source: Original article
