XRP’s on-chain activity shows signs of strain, with payment volume between accounts dropping by over 300 million XRP in just two days. This sharp decline highlights waning demand and falling engagement across the XRP Ledger.
Earlier in April, payment volume peaked at over 800 million XRP. A second high near 500 million XRP followed, but by April 30, the figure had declined to 527 million XRP.
Payment Volume Decline Signals Reduced Network Activity
This trend is concerning as payment volume often represents real usage across institutional and retail participants. When this metric experiences a steady decline, it demonstrates that users are less confident conducting transactions on-chain or may no longer need blockchain-based transfers.
A decrease in network activity is a price influence factor because it weakens bullish price momentum. This metric is an early warning signal for price decline and brief market corrections unless market demand stays robust.
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Technical Picture Remains Unclear as Momentum Slows
XRP is trading near $2.13, just above a key ascending support line within a tightening wedge pattern. Despite several attempts, the price has struggled to break the $2.20 resistance.
Currently, the Relative Strength Index shows 53, which demonstrates that the market lacks robust directional forces. The EMAs demonstrate synchronization as volume conditions remain subdued, which commonly signifies consolidation phases.
Source: Tradingview
A drop below support levels might trigger a fast market descent to reach either $2.00 or $ 1.98’s lowest points. The coming days could be critical in determining whether the asset consolidates or retraces further.
Short-Term Outlook Remains Cautious
The 300 million XRP drop in payment activity adds weight to the network’s health concerns. The unclear chart signals drive market professionals and traders to adopt a defensive approach.
XRP’s price trend may face challenges because on-chain activity needs to become active again, or a significant price movement must develop. The approaching market period may reveal whether the market value will stabilize or continue its downward trend.
XRP’s declining transaction volume and mixed technical signals reflect weakening market conditions. Without renewed engagement or a breakout, short-term performance may remain under pressure.
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