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With payments dropping from 1 billion to just 100 million, XRP has experienced a sharp decline in on-chain volume. The asset's liquidity and the general health of the market are called into question by this sharp decline. But in spite of this drop in volume, the price of XRP has stayed largely steady, circling the $3.10 threshold. XRP has maintained its bullish momentum following a robust breakout earlier this year.
With a strong position above the 50 EMA, the price is currently trading above important moving averages. Notwithstanding the decline in transaction volume, the asset has demonstrated resilience, demonstrating that investor sentiment is still favorable. The next upward move may be defined by the resistance levels of $3.20 and $3.50, which are important to monitor.
Another rally may bring XRP closer to $4 if it is able to surpass these levels. Support is located at $2.86 on the downside, which is in line with a significant moving average. A more substantial retracement might occur if this level is lost. The dramatic decline in on-chain payments is one of the most significant changes in XRP's network activity.
Godfrey BenjaminOnly a few weeks ago, the network handled over one billion transactions; today it processes almost 100 million. Since XRP has been used extensively for institutional or remittance-related transactions, this decline may be the result of a slowdown in those transactions. Additionally, the XRP Ledger's active account count has dropped, which can indicate that fewer people are using the network.
Although this does not necessarily portend a bearish turn for XRP, it does point to a time when its ecosystem is cooling off. The fact that XRP's price is steady in spite of the volume decline suggests that there is still a lot of speculative interest in the asset. On-chain activity may support bullish momentum even more if it recovers. On the other hand, if transaction volume keeps dropping, it might be a sign of diminishing demand, which could increase price volatility.
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.
Godfrey Benjamin
Yuri Molchan
Dan Burgin
Vladislav Sopov