The XRP network is facing a drop in transaction activity, which may affect its market value and future development.
Decline in XRP Transaction Activity
The number of transactions and payments on the XRP network has fallen to the lowest levels in the last 20 days. This data from the XRP Ledger shows that on June 26, payments reached 505,482 while total transactions fell to 778,650. This significant retreat for a network that typically processes between one and two million transactions daily raises concerns about the demand for XRP's utility.
Current Price and Market Indicators
The chart indicates XRP is struggling to remain above key EMA levels (26, 50, 100, and 200), lingering near resistance between $2.18 and $2.22. Trading volumes are not impressive, and momentum indicators like the RSI are flatlining. The underlying bearish sentiment is exacerbated by the inability to break above major resistance despite numerous attempts.
Investor Outlook
While the decline in network activity is a warning signal, it is important for investors not to panic. Following weeks of high activity, this drop could be temporary. Reduced volatility among altcoins and market-wide indecision may also contribute to this situation. However, a further decline in these metrics may undermine confidence in XRP’s inherent value. The short-term outlook for investors suggests range-bound movement with a higher risk of decline if network activity does not recover.
The XRP network activity has hit multiweek lows, serving as a warning but not yet a crisis. If on-chain demand does not increase soon, XRP may struggle to maintain its current price levels.
