XRP Network Activity Plummets: Billions Lost in On-Chain Volume Drop

Ripple’s native cryptocurrency, XRP, is experiencing a significant decline in network activity, raising concerns about its future prospects. The asset has witnessed a sharp drop in on-chain volume following a period of strong momentum earlier this month. 📈

Data reveals a notable decrease in XRP payments from the record-breaking levels observed at the peak of August.

On August 21, daily account-to-account transactions fell to roughly 522 million XRP – down sharply from the over one billion XRP recorded earlier. This decline signals a potential shift in XRP’s network utility, and may affect trust in its long-term prospects.

The chart depicts this shift with XRP now trading below $3.50, marking a significant drop after the asset’s July rally that lifted prices above $3.50. The downward trendline has broken, leaving a question mark over future bullish trends.

Technical analysis suggests support at the 100-day EMA level ($2.79) while the 200-day EMA is located closer to $2.45. However, momentum indicators are indicating weak strength and lack of vigor in the market.

To stabilize its current condition, a noticeable increase in on-chain activity is required – specifically, a return of payment volumes to the one billion XRP mark. A new upward trendline recovery would indicate fresh strength for XRP in the coming days.