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Following a drop in the number of payments processed throughout the network, XRP’s on-chain activity is exhibiting cracks. Data shows that in just one day, the volume of transactions between accounts dropped by over 600,000, reaching a low of about 223,000 payments on Sept. 15.
Fighting for $3
XRP is trying to stabilize above $3, but this is one of the sharpest short-term declines in recent months, raising worries that network momentum may be eroding. A total of 600,000 transactions were lost. A decrease like this is concerning for a network that depends on its ability to facilitate cross-border settlements and handle high transaction volumes.
The abrupt contraction indicates a significant liquidity and activity gap when compared to the regular handling of over 800,000 to almost one million daily payments through late August and early September. Technical limitations, decreased institutional flows or declining retail participation are all contributing factors to XRP’s network’s decline.
Declining network
The overall trend indicates that activity has been declining since early September, which is consistent with a decelerating attitude in the altcoin space. These numbers point to a potential mismatch between network potential and real-time demand, even as Ripple Labs persists in its drive for institutional adoption.
The decline emphasizes that XRP’s on-chain activity is not immune to the general market sluggishness, even in the face of well-publicized legal victories and ecosystem headlines. The credibility of XRP’s utility story may suffer greatly if transaction counts keep declining.
In terms of price performance, there is hope for a bullish continuation after XRP recently broke out of a descending triangle pattern. However, after reaching $3.20, the momentum swiftly waned and sellers drove the price back toward $3.00.
Now hovering just below at $2.96, the 50-day EMA is serving as a possible support area. If XRP makes a strong recovery here, it might maintain its bullish structure; however, if it breaks, it could be pulled toward the $2.80 level, where the 100-day EMA serves as secondary support.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team