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On-chain activity for XRP has shown an odd discrepancy between the number of transactions and the volume of payments. A total of 1,501,797 transactions were completed in the last 24 hours, according to data, indicating a spike in activity. However, after reaching levels in the hundreds of millions to billions, the total payment volume has fallen precipitously to just 193 million XRP, edging closer to zero.
Unusual divergence
This disparity implies that although transaction volume is increasing, average transaction size is declining. In contrast to large-value transfers, which are frequently linked to institutional players or whale accounts, it suggests increased network activity. Instead, the ledger is dominated by smaller payments, which suggests either fragmented activity or micro-transfers rather than large settlements.
After a robust rally earlier in the month, the market has been consolidating above $3.10, finding support close to the 26 EMA, according to the XRP/USDT price chart. Price action is currently held by an ascending trendline, but it is steep and susceptible to breaking if selling pressure increases. Because there aren't any significant on-chain settlement flows, the exchange volume is still low.
Resistance is locked
According to the daily chart, the first resistance is located around $3.25, and if momentum picks up, it will move to $3.40. A decline below $3.00 would pave the way to $2.89 (the 50 EMA) and perhaps $2.71, a July structural support level.
Although transaction counts have remained steady, the most alarming indication is the decline in payment volume. Declining payment volume, which indicates less capital flowing throughout the network, has historically come before waning market conviction. Even with strong transaction volume, XRP may have trouble maintaining its current price levels if this trend continues.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team