XRP payment volumes have dropped sharply, losing over two million transactions in just four days. This follows a recent period of high activity on the XRP Ledger, sparking concerns about the sustainability of its price surge and on-chain performance. Earlier this month, XRP showed significant growth in active accounts, transaction completions, and tokens burned through fees. However, the recent drop in payment volume suggests a shift in market behavior or reduced transaction activity.
Market Behavior Indicates Possible Transaction Halt
Payment volume peaked earlier this month, likely driven by heightened trading and whale movements. These peaks have now tapered off, indicating a potential halt in transaction activity.
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The inability of XRP to maintain its steep upward trend suggests waning buying momentum. Institutional and retail participants appear to lack the follow-through needed to sustain the asset’s bullish performance.
Price Stability Amid Declining Activity
Despite the drop in payment volumes, XRP has held its position on the price chart, currently trading at $1.13. This stability reflects cautious optimism in the broader market sentiment.
Source: CoinMarketCap
The asset previously climbed from $0.50 earlier this month, marking a remarkable rally. While trading volumes have decreased compared to the surge, XRP remains in the overbought zone, as indicated by the Relative Strength Index (RSI).
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This overbought condition could signal an upcoming correction. If XRP fails to sustain its support level at $1.00, analysts expect the next key support levels at $0.90 and $0.78 to come into play. A breach of these levels could signal further price declines.
Despite the current slowdown in on-chain activity, XRP continues to rank among the market’s strongest assets. Its resilience positions it as a potential driver for the market’s next upward move.
