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With on-chain metrics showing a 90% decline in payment volume, the recent market activity surrounding XRP has certainly been worrisome. Its short-term outlook is further clouded by the fact that this sharp decline occurs during a time of price volatility for the asset. For weeks, XRP has been trapped in a declining channel, unable to sustain its bullish momentum.
The price is still under pressure because it is battling important resistance levels even after attempts to recover. Resistance is forming close to $2.60, and XRP is currently trading around $2.27. Although the general market sentiment is still cautious, a breakout above this level might indicate a possible reversal. The steep drop in on-chain activity remains the most concerning aspect of XRP's current performance.
Arman ShirinyanThe number of payments on the XRP network has drastically decreased — by nearly 90% — from over 1 billion to about 128 million. Usually, such rapid drops are a question of time, and the network recovers back to normal values. However, there might be a case where there simply will not be enough resources on the network to make things normal again.
Gamza KhanzadaevThere is a mixed picture for XRP due to the combination of decreased network activity and price difficulties. One could argue that the drop in on-chain transactions is a sign of a brief lull driven by investor hesitancy or macroeconomic considerations. However, if XRP is unable to rebound in both price action and on-chain metrics, it might be exposed to more negative risks.
Regaining higher price levels and breaking out of the current downtrend are necessary for XRP to regain bullish momentum. Resuming the volume of transactions could also boost network confidence. Until then, investors should exercise caution as the asset makes its way through a difficult market.
Dan Burgin
Vladislav Sopov