XRP Sees 300M Token Drop in 24 Hours Amid Market Shake-Up

XRP, one of the leading utility tokens in the crypto sphere, has seen a sudden and dramatic drop in transaction volume, shedding nearly 300 million tokens within a single day. This unexpected development has raised eyebrows among investors and analysts, potentially altering expectations for the asset’s short-term momentum.

On May 22, XRP’s payment volume nosedived from over 700 million tokens earlier in the week to just around 412 million. This sharp decrease in on-chain movement arrives at a critical juncture, as the token is navigating significant technical levels on its trading chart. Having recently managed to break free from a descending channel that had constrained its price action for months, XRP’s recent price ascent had ignited optimism within the investor community.

Following its break above the 50-day and 100-day exponential moving averages (EMAs), XRP appeared poised for a potential upward trend. It even reclaimed its position above the 200 EMA—a sign many traders consider vital in defining medium-to-long-term trend reversals. Despite these bullish indicators, the drop-off in transaction volume could shake that optimism.

The XRPScan metrics highlight this stark contrast: while pricing efforts persist, on-chain utility has temporarily lagged. For a utility-driven asset like XRP, payment volume is more than a statistic—it’s a fundamental health check. It reflects active demand, institutional involvement, and real-world transactions taking place on the Ripple network.

Historically, spikes in XRP payment activity tend to mirror the token’s market momentum, often accompanying bullish trends. The current decoupling between ascending technical price markers and declining on-chain usage suggests the possibility of a weakening rally. Without restored transaction flow, XRP’s strong appearance on the charts may not lead to sustained momentum.

Currently, XRP is hovering under the $2.50 resistance zone, consolidating after its previous bullish surge. The support area between $2.30 and $2.35, which closely aligns with the 100 EMA and a notable breakout region, will be essential for maintaining this upward trajectory. Holding above this zone opens the door to retesting $2.60 in the near future. However, breaching below it could send XRP into a correctional movement, potentially sliding toward the $2.15 to $2.20 range.

The implications go beyond XRP alone. Often seen as a barometer for blockchain-based payment tokens, XRP’s on-chain behavior provides insight into how utility-based assets are being perceived during broader market fluctuations. While XRP currently benefits from a favorable Relative Strength Index (RSI) position—neither overbought nor signaling bearish divergence—the missing puzzle piece remains: transaction volume.

The drop-off could stem from decreased institutional flows or simply a temporary pause in broader market demand. Regardless of the catalyst, XRP’s potential to climb hinges on sustainable usage and consistent on-chain validation of its network utility. Without it, even technically strong price formations risk becoming short-lived.

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

As it stands, XRP remains at a crossroads. Whether this recent setback in payment volume is a momentary glitch or a sign of deeper concern will depend on how swiftly the network activity rebounds. Traders and holders alike will be watching closely—because when it comes to XRP, utility isn’t just a feature, it’s the fuel.