XRP has recently fallen beneath the critical 500 million transaction volume benchmark, signaling potential shifts in sentiment across the Ripple network.
XRP has recently fallen beneath the critical 500 million transaction volume benchmark, signaling potential shifts in sentiment across the Ripple network. This notable development comes at a time when the cryptocurrency is attempting to maintain its position in a consolidating market environment, raising questions about its short-term outlook.
According to recent data from May 17, on-chain activity for XRP dropped to 490 million in payment volume. This decrease suggests waning engagement on the network, which could either represent a temporary lull or indicate deeper uncertainty among investors and traders.
Despite this decline in transactional activity, XRP is holding steady, currently trading around $2.38. The 26-day Exponential Moving Average (EMA) is emerging as a key zone for support. This level has historically influenced short-term trends, and XRP’s interaction with it could determine whether the asset regains its upward momentum or dips further.
Technical patterns on the chart offer some clues. XRP recently broke out of a descending wedge formation, which is typically viewed as a bullish signal. The breakout was accompanied by a decent spike in volume. However, follow-through buying has yet to show strength. The price action since then remains flat, casting some doubt on the sustainability of the breakout.
Support levels currently range between $2.30 and $2.15. These thresholds are reinforced by past trading congestion and the intersection of moving averages. If XRP manages to rebound from the 26 EMA—currently near $2.31—it might open the door for a renewed attempt at the $2.60 resistance zone. This area has posed difficulty in the past, but renewed buying interest at critical support zones could energize the bulls.
Conversely, if XRP fails to defend these critical moving averages and drops below $2.15, the price may fall back toward $2.00, where the stronger 100 EMA lies. This would represent a more significant retracement and could hinder any immediate bullish ambitions.
Traders and analysts are paying close attention to XRP’s on-chain activity. A return of payment volumes above 500 million could act as a catalyst for increased investor confidence and reignite upside momentum. Without a rebound in volume and price action, however, XRP may remain in a vulnerable position.
The immediate future will likely hinge on XRP’s ability to maintain support above $2.30 and reclaim its standing above the 500 million volume mark. Should both these conditions be met, the cryptocurrency’s bullish case might regain traction. However, failure to achieve either could point to continued consolidation or even a corrective downturn in the sessions ahead.
XRP volumes drop 40% as price flips script
Related: Expert Advice: Sell XRP If You’re Confused
Quick Summary
XRP has recently fallen beneath the critical 500 million transaction volume benchmark, signaling potential shifts in sentiment across the Ripple network. This notable development comes at a time when the cryptocurrency is attempting to maintain its position in a consolidating market environment, raising questions about its short-term outlook.
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.
