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With the number of completed transactions falling by about 1 million, the XRP network has recently displayed a noticeable decline in transactional activity. The decrease follows a spike in activity earlier this year as shown by on-chain metrics. Even though the XRP blockchain has experienced extended periods of high throughput, the decreased activity begs the question of what the market is thinking and what factors might be affecting the network.
Considering the recent spikes in price and activity, this decline in transaction volume may signal a cooling phase. These times frequently indicate that traders and investors are reversing course, perhaps in anticipation of fresh stimuli to rekindle the market. On the other hand, this change may be the result of a brief decline in the demand for XRP's use in remittances and payments, which normally fuel its network utilization.
XRP is trading close to $3.13 on the price chart, maintaining above important moving averages. Even with this comparatively solid position, the asset still faces crucial resistance at $3.30. If the lower high pattern — a bearish signal that frequently precedes corrections — is invalidated, breaking above this level could indicate that the uptrend will continue. In contrast, if XRP is unable to rise above $3.30, it may enter a period of consolidation or even a downward trend.
Yuri MolchanMonitoring the support levels at $2.80 and $2.50 is worthwhile because they might serve as buffers in the event of a pullback. These levels could be tested in the near future if there is not enough trading volume and momentum. All things considered, even though the decline in network activity indicates a slowdown, XRP is not necessarily doomed.
XRP may use this momentum to test its resistance levels if the market gains confidence and transaction volumes increase. Investors should now closely monitor $3.30 and look for indications of fresh activity in the price movement and on-chain.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov