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XRP is coming under increasing pressure followed by a substantial network volume decline. After the rise of momentum, the asset has now fallen below important technical and fundamental thresholds, painting a questionable future outlook.
XRP payments' volume drops
The volume of XRP payments has sharply decreased, according to on-chain data. When it peaked earlier in August, daily account-to-account transactions regularly remained at or above one billion XRP. But according to recent data, payment volumes have drastically decreased, dropping to about 522 million XRP on Aug. 21. There is a noticeable halt in the momentum, which indicates that XRP's network activity is becoming less useful and interesting.
In light of Ripple's long-standing advocacy for adoption in institutional transfers and remittances, persistent payment weakness may erode trust in the asset. The market chart illustrates this deteriorating environment. XRP is currently having trouble around $2.85, following a robust rally in July that lifted the asset above $3.50. Technically, the price has broken below the rising trendline that had previously held up its bullish structure.
Market performance
At $2.79, XRP is trading just above its 100-day EMA, which could serve as a short-term support level. If this level does not hold, the next significant support, which is in line with the 200-day EMA, is located closer to $2.45. Additionally, momentum indicators point to a lack of strength.
On-chain activity must increase again, with payment volumes returning to the one billion XRP mark in order for XRP to stabilize. In terms of technical analysis, the first indications of fresh strength would be the recovery of the ascending trendline and breaking above the resistance at $3 per hour. The market is in ruins after losing a vital basis of price structure and network utility, and XRP is still at risk until then.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team