- XRP dropping on-chain
- Everything not so gloomy
On-chain and market activity are collapsing simultaneously, causing XRP to experience one of its most severe declines in recent months.
XRP dropping on-chain
The most recent data indicates that the number of active accounts on the XRP Ledger fell from over 20,000 to 10,579 unique senders in a single day, a nearly 50% decrease. There are concerns about whether XRP can maintain its current price levels above the $3.00 threshold given this decline, which indicates a significant loss of transactional demand.
XRP/USDT Chart by TradingViewA descending resistance trendline that has capped rallies since late July continues to exert pressure on XRP, which is currently trading at about $3.04, just above important moving averages. Support is evident at $2.90 and $2.79, and the 200-day moving average close to $2.55 acts as a crucial safety net for bulls, indicating that the price structure is still brittle. If on-chain activity keeps declining, a clear break below these levels might exacerbate bearish sentiment.
The decline in active addresses points to a decline in user engagement with the XRP network. When it comes to remittances, payments or institutional settlement activity, this metric frequently represents actual demand. Less account activity could cause XRP to lose the momentum it needs to sustain its recent gains. Such abrupt declines in network activity have historically predicted corrections, particularly when combined with dwindling trading volume.
Everything not so gloomy
However, XRP still has the ability to change perception if buying demand increases at the present rate. In the short term, a successful breakout above $3.10-$3.20 would open the path toward $3.50 and confirm a trend reversal. However, network activity needs to level off and ideally return to more than 30,000 active accounts per day in order for that to occur.
The sharp drop in activity suggests short-term waning adoption, which might push the price down unless there is new demand. In order to ascertain whether this was a brief decline in network usage or the beginning of a more significant one, the next few days will be crucial.
Source: https://u.today/xrp-loses-50-in-24-hours-activity-disappears
