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Weakening on-chain activity and a precarious price structure are two factors that XRP is dealing with, both of which indicate ongoing short-term pressure.
XRP Ledger's volumes drop
The dramatic decrease in XRP Ledger payment volume, which fell by about 70% in just one day, is certainly not contributing to the price performance of the asset. This decline in network activity is indicative of a definite slowdown in transactional demand and usage, which is generally a negative sign for the sustainability of prices. A decline of this size indicates lower network participation, and on-chain metrics frequently serve as a leading indicator.
Bullish narratives are undermined by lower payment volume, which suggests fewer transfers, lower utility demand and decreasing throughput.
Ranges to look for
The signal becomes more alarming when paired with the current price trend. Technically speaking, XRP is still in a wider downtrend and is trading around the $1.30 mark. The graphic depicts an unsuccessful attempt to create a short-term ascending structure that has since collapsed. All of the major moving averages are still above the current levels and serve as dynamic resistance, as the price continues to form lower highs. This proves that sellers still control the majority of the market.
The $1.38-$1.40 range, where recent attempts to push higher have been thwarted, is currently serving as immediate resistance. Beyond that, a more substantial barrier associated with a higher time frame structure is represented by the $1.60 region.
The $1.25-$1.30 range is being tested frequently on the downside. A deeper retreat toward lower demand zones would probably be the next course of action if this support fails.
There are no clear reversal signals on momentum indicators. Volume does not suggest accumulation, and RSI is still weak and does not diverge. Rather than aggressive selling, which frequently results in a gradual continuation of the trend, market behavior suggests passive drift lower.
The alignment of declining network activity with a bearish price structure is the main concern for investors. This combination raises the likelihood of additional declines or, at most, ongoing resistance-based consolidation.
Expectations should be muted over the coming week unless XRP can return to higher levels and demonstrate a rebound in on-chain activity. A bullish breakout is not supported by the current setup, and the decline in ledger usage increases the likelihood of ongoing weakness rather than recovery.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
