XRP’s network has witnessed a staggering 90% drop in payment volume, raising concerns among investors. This decline comes at a time when the asset struggles with price volatility. For weeks, XRP has remained stuck in a downward trend, failing to regain bullish momentum.

XRP Battles Key Resistance Levels

The price continues to face pressure as it fights to break through critical resistance levels. Currently, XRP trades around $2.30, while resistance has formed near $2.60. Although market sentiment remains cautious, a breakout above this level could signal a potential reversal. 

24-hour price chart. Source: CoinMarketCap

However, the sharp drop in network activity remains the biggest concern for investors. The number of payments processed on the XRP network has plunged from over 1 billion to approximately 128 million. 

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Typically, such drastic declines correct themselves over time, allowing the network to return to normal. However, this case raises concerns about whether XRP has enough network resources to restore transaction volume.

XRP Must Recover to Avoid Further Risks

The combination of reduced on-chain activity and price struggles paints a mixed outlook for XRP. Some believe this slowdown stems from investor uncertainty or broader macroeconomic factors. However, if XRP fails to recover both in price and network transactions, it could face additional downside risks.

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For XRP to regain momentum, it must break out of its current downtrend and reclaim higher price levels. Additionally, an increase in transaction volume could restore confidence in the network. 

Until these improvements materialize, investors should remain cautious as XRP navigates a challenging market.