XRP comes under pressure following a sharp drop in transaction numbers, impacting its price dynamics.
Market Situation (XRP)
Since the beginning of the month, XRP has been losing value, dropping over 4% in a single day amid attempts to stay within a narrowing trading range. At time of writing, XRP is trading around $2.23, undermining recent gains and investor confidence.
Decline in Network Activity
Transaction activity on the XRP network has fallen sharply by over 300,000, directly linked to the latest price drop. Network analytics show that the daily number of transactions, which was above the 1-2 million mark earlier in March, has started to plummet. This suggests waning growth and user engagement, despite ongoing network operations.
Technical Analysis and Outlook
XRP's current chart shows a breakdown below the 50 and 26-day EMAs and a move towards the lower boundary of the descending channel. If the level at $1.93 isn't maintained, a broader correction or bearish breakdown from the multi-month pattern could ensue. High sell-off volumes might indicate the onset of panic or institutional unloading tied to the deteriorating on-chain dynamics.
Facing declining transaction numbers and technical pressures, XRP is in a critical situation. Bulls may need to activate to maintain current support levels.
