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.
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.
Related: XRP Price: $12M Max Pain for Bears
Source: Original article
Quick Summary
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.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
