XRP Network Activity Plunges 70%, Raising Concerns

The recent drop in XRP network activity has raised alarm bells across the cryptocurrency landscape. The XRP Ledger, Ripple’s decentralized infrastructure layer, has seen a dramatic 70% reduction in payment transactions, casting doubt on the asset’s short-term momentum and signaling deeper concerns over user engagement and utility.

Currently, XRP is trading just above its 200-day moving average, a crucial technical level it has managed to hold for months. However, despite intermittent attempts at upward movement—including a minor breakout from a descending wedge pattern—the token is struggling to sustain any rally. The lack of volume and conviction is particularly evident around the 26-day Exponential Moving Average (EMA), a key resistance point that XRP has failed to break above with strength.

From a technical perspective, XRP appears stagnant. The Relative Strength Index (RSI), which helps measure momentum, hovers just below the neutral zone, suggesting that the market isn’t oversold enough to lure in bargain hunters nor strong enough to trigger fresh bullish sentiment. This indecisiveness is reflected in the price behavior, which remains range-bound and unsupported by strengthening fundamentals.

What’s more troubling is the collapse in usage across the XRP Ledger. On-chain metrics, specifically transaction volume for payments, reveal a stunning decline—from nearly 2.5 million daily transactions to just 741,501, as of June 25. This isn’t a minor fluctuation. Such a significant decrease signals not only less activity but potentially waning real-world demand and usage of the Ripple protocol.

Payments are the heartbeat of XRP’s network. A steep fall in transactional volume usually points to a shrinking community of active users, lowered utility, and weakening confidence in the overall use-case. Without a consistent level of user activity, even the most technically resilient asset can find itself vulnerable to sudden bearish shifts.

The current chart dynamics reflect this vulnerability. XRP’s trading volume is conspicuously low, and every attempt to push beyond the 26 EMA has met firm resistance. This lack of momentum isn’t just a technical problem—it’s symptomatic of a more foundational issue. If users are no longer engaging with the network, price stability becomes nearly impossible to maintain organically without speculative pushes.

At this stage, unless there is a surprising recovery in user participation and transaction count, XRP may struggle to find traction. Technical patterns suggest the possibility of further downside, and without any compelling bullish reversal on the horizon, the market sentiment could deteriorate further. Traders and long-term holders alike are urged to monitor on-chain metrics closely, as they often provide the earliest warnings of larger market movements.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, XRP is caught in a bind: weak user activity, declining transactions, and a stagnant chart pattern that refuses to break out meaningfully. Until these conditions change and the network sees a revitalized wave of activity, optimism about a strong recovery appears premature.