XRP is showing concerning signs as a noticeable drop in its daily volume signals weakening strength in Ripple’s payment network. The cryptocurrency, which has long been a key player in global cross-border solutions, recorded just 473 million XRP in transaction volume over the past 24 hours. This decline raises red flags as it suggests dwindling market appetite and could hint at turbulence ahead for Ripple’s native token.
Just days ago, XRP volumes exceeded 640 million, but this sharp drop-off in activity leaves investors questioning the asset’s momentum. Such a decline can signify reduced utility or a pullback in confidence from major holders and institutional movers.
From a technical point of view, XRP is teetering near the 26-day Exponential Moving Average (EMA), a level often used by analysts to gauge the strength and direction of price trends. If the cryptocurrency fails to maintain this line of support, we might see it tumble toward the 50 EMA and possibly even down to the 100 EMA. These supports currently range near $2.20 and $2.05, levels that could become the next battlegrounds should the bearish sentiment deepen.
Volume figures on technical charts are also weakening. This lack of confirmation for upward price action implies that any short-term gains are not backed by strong investor conviction. It’s often an early warning of either an incoming sharp correction or the beginning of a stagnant period of sideways price movement.
Adding to the sense of uncertainty is the Relative Strength Index (RSI). This key momentum indicator has now fallen out of overbought territory and is hovering in neutral zones near the midline. Such behavior from the RSI aligns with a market unsure of where to head next, revealing a broader sentiment of indecision among traders.
Earlier this month, XRP gave hope to bulls by breaking out of a descending wedge pattern—often considered a bullish reversal signal. But the enthusiasm was short-lived. Attempts to reclaim the $2.70 to $2.80 range have failed, further suggesting that buyers are losing control.
On-chain data reflects this cooling momentum. Falling below the 500 million daily payment volume threshold is typically seen as a deterioration in token utility. This drop can either mean transactions among major stakeholders have slowed, or general use cases are declining—both scenarios that diminish confidence.
All indicators, both on-chain and technical, paint a cautious picture. Unless XRP manages to recover these volumes or hold above crucial support levels, the path forward appears uncertain. A failure to rally soon could confirm a deeper phase of correction, pushing the asset into a more prolonged downturn.
Related: Expert Advice: Sell XRP If You’re Confused
XRP’s short-term trajectory now hinges on its ability to stay above key EMA levels and, more importantly, reignite interest among investors and payment processors alike.
