Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The volume of XRP payments has significantly decreased from over 31.2 billion transactions to just 900 million. This sharp drop happened quickly as the charts indicate either a change in market sentiment or a decrease in usage. The sustainability of XRP’s current market position and its capacity to sustain its recent explosive growth are called into question by this decline.
According to the payment volume chart, the spike in XRP payments above $2 corresponded with the peak usage of the token. However, the price began to show indications of waning momentum as the volume of payments fell. Price stability or growth in cryptocurrencies is frequently correlated with payment activity; a sharp decline could be a sign of speculative demand or diminished utility.
This pattern might have a significant impact on XRP’s price trajectory if it persists. This is also the case with the active accounts chart. The token price’s spike was accompanied by a sharp rise in active accounts, but this trend has since leveled off. This decline in new user activity might suggest that a small number of active traders rather than broad adoption were responsible for the most recent rally.
Maintaining these price levels may become more difficult in the absence of wider involvement. After hitting highs close to $3, XRP has created a noteworthy reversal candle from the standpoint of the price chart. The market looks to be cooling off, and the quick rise is beginning to show signs of exhaustion.
Related
Two important support levels to keep an eye on are $2.00 and $2.50. The sell-off could quicken if there is a breakdown below these levels. On the plus side, resistance close to $3 is still a crucial obstacle to any fresh bullish trend. A change in market behavior that may put additional pressure on XRP’s price is reflected in the drop in transaction volume and active accounts.
The current situation calls for caution because absent new demand or utility to support the asset’s valuation, a price reversal could be imminent. Since they frequently drive price movement on the cryptocurrency market, traders should pay special attention to transaction volume and metrics.
Source: https://u.today/xrp-from-32-billion-to-800-million-whats-happening