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XRP Ledger has recorded a sharp contraction in payment volume after another temporary burst of unusually high activity. Daily payment volume briefly exceeded 600 million XRP on August 7 before collapsing toward comparatively negligible levels by August 9. From the local peak, the decline approaches 90% and could initially look like a major deterioration in network usage.
XRP's payment volumes are finally back
Over the past month, XRP Ledger's payment volume has been incredibly erratic, with frequent short-lived spikes followed by returns to baseline activity. In August, there was yet another surge. XRP Ledger's volume hit roughly 614.9 million XRP. There was no consistent rise in payment activity as a result of either move.
This is significant because, rather than the disappearance of established transaction demand, the most recent 90% decline primarily reflects normalization from an abnormal peak. Before the move could plausibly point to a structural decline in network usage, XRP Ledger would need to stay at low levels for a significant amount of time.
The price of XRP is still under pressure. The price chart paints a worse picture. XRP is trading at about $1.036 and is below every significant moving average displayed on the daily chart. The larger moving averages remain significantly higher at roughly $1.185 and $1.377, while short-term resistance is located between $1.075 and $1.087. Sellers continue to benefit from that arrangement.
XRP keeps moving to lower highs
Additionally, XRP has been reaching lower highs; however, its most recent attempt to stabilize between $1.05 and $1.10 failed to generate sufficient momentum for a breakout. While weak momentum is confirmed by the RSI at about 40, a heavily oversold market is not indicated.
As a result, sellers can still drive XRP lower without immediately encountering a technical dead end. The primary threshold is currently $1.00. By holding it, XRP may be able to keep consolidating and eventually attempt another comeback toward $1.08–$1.10.
The recent lows between $0.95 and $0.97 would be exposed if that level were lost. However, the 90% decline in payment volume should not yet be viewed as a serious warning for XRP Ledger itself. The most recent decline is consistent with the network's current activity pattern, since recent data indicates that these massive spikes have been episodic.
U.Today Editorial Team
Dan Burgin
