XRP On-Chain Volume Plummets 75% Amid Market Shift

XRP, one of the most closely watched digital assets, has experienced a dramatic plunge in network activity, with on-chain volume shrinking by an alarming 75% in recent days. This sharp contraction in transaction volume signals a significant shift in market sentiment, raising concerns about a potential cooldown following months of bullish momentum.

According to recent blockchain metrics, XRP’s on-chain volume has dropped from over 400 million tokens to just around 100 million—a drop that has caught the attention of analysts and investors alike. Such a steep decline is often indicative of evolving market dynamics, possibly triggered by profit realization or a wave of caution spreading among traders in response to turbulent market conditions.

Data from XRP transaction trackers suggests that this decline began accelerating notably after May 20. Before this point, daily transfers frequently eclipsed the 400 million XRP mark. However, by May 29, payment volume had slipped to approximately 177 million XRP, underscoring the stark downtrend in user activity. This weakening participation could be attributed to traders stepping back amid uncertainty, especially after XRP staged extended gains earlier in the year.

The price of XRP, meanwhile, has been hovering in a tight range between $2.29 and $2.30. Analysts point out that two moving averages—the 50-day and 100-day exponential moving averages (EMAs)—have been instrumental in propping up the price. These EMAs continue to act as key support levels, helping to stabilize price performance despite the broader slump in volume. If prices fall beneath these levels, however, XRP may test a lower support region near $2.07.

Another worrying sign is the broader decline in overall trading enthusiasm. The muted transaction volume carries implications for market liquidity and speculative momentum. Technical indicators like the Relative Strength Index (RSI) are currently reflecting mild bearishness, remaining consistently below the neutral 50 threshold. This hints at an undercurrent of weakness, increasing the vulnerability of XRP to further downside movement should no major rebound follow.

The outlook, however, is not entirely bleak. If XRP can sustain its position above the 50-day and 100-day EMAs, it may avoid deeper losses and instead enter a consolidation phase. This would potentially allow enough room for buyers to regroup, possibly leading to a revival in activity if on-chain transactions begin climbing again.

For now, traders will be watching the key technical corridors closely—especially the $2.25 and $2.07 price levels. Holding above these thresholds is crucial for maintaining bullish momentum in the medium term. With the recent reduction in trading volume, it becomes increasingly important for investors to stay alert and adaptive in the face of rising volatility that could swing prices unexpectedly in either direction.

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

As XRP navigates this period of reduced engagement and technical vulnerability, the broader crypto market appears to be entering a more cautious phase. The dramatic fall in on-chain volume might be a symptom of larger structural adjustments taking place, particularly as regulatory pressures mount and macroeconomic conditions remain unpredictable. Whether this is merely a short-lived cooldown or a precursor to deeper corrections will depend on how XRP behaves in the coming weeks across both technical and fundamental indicators.