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Compared to recent lows, the daily payment volume on the XRP Ledger's important metric surged by more than 200%, indicating a significant increase in payment activity. Payments between accounts increased to roughly 291 million XRP, according to XRPL network data, a notable improvement over the muted levels observed earlier this month. Such a spike seems extremely bullish at first glance.
User activity is finally back
Increasing payment volume is frequently seen as an indication of growing user activity, network utility, and demand for the underlying asset. But whether this increase is significant enough to change XRP's present market trajectory is the crucial question for investors. The recent increase comes after a period of exceptionally low network activity, despite the fact that it is impressive on a percentage basis.
The XRP Ledger payment volume dropped precipitously earlier this month, which made a statistical recovery easier. When considering the overall pattern, payment activity is still far below the significant peaks seen over the previous 12 months, including the enormous increase noted at the start of July. That cautious attitude seems to be shared by the market itself. XRP is still in a steady downward trend on the daily chart. The asset is still trading below its 50-, 100-, and 200-day moving averages, which are still in line with a bearish structure.
The price is currently close to $1.07, and short-term moving averages have opposed every recent attempt at a recovery. Aggressive accumulation is not yet suggested by volume. The comparatively low level of trading activity suggests that market participants have not entirely embraced the most recent network growth statistics. The payment spike is not insignificant, though.
Network metrics are dwindling
Particularly when sentiment has become overly negative, network metrics frequently improve before price responds. The rapid recovery of payment volume following the previous collapse indicates that underlying activity on the XRP Ledger is still present rather than completely vanishing.
Furthermore, the asset is no longer noticeably overheated because XRP's RSI is close to the neutral-to-oversold zone. If broader market sentiment improves, this, along with stabilizing network activity, creates conditions that may facilitate a recovery. For the time being, rather than being a clear indication of a trend reversal, the 200% increase in payment volume should be seen as a positive sign.
The indicator shows that the XRP Ledger is still in use, but before traders can consider the development a truly bullish catalyst for XRP's price, they will probably need to observe consistent growth in payments, increased trading volume, and a break above important moving averages.
Dan Burgin
U.Today Editorial Team
