90% XRP Ledger Drop: What's About It?

XRP Ledger's Declining Activity Raises Concerns

The latest data paints a concerning picture for XRP, with on-chain activity plummeting by 90% from recent highs. This sharp decline in payment volumes and transactions across the XRP Ledger has sparked debates about the network's real-world adoption and long-term viability, leaving the cryptocurrency at a critical juncture.

While XRP's price has maintained its position between $2.30 and $2.40, the dramatic drop in actual usage suggests speculative trading may be overshadowing genuine utility. This changing sentiment is evident in XRP's price movement, which has entered a tightening consolidation phase after its early May breakout.

The cryptocurrency currently tests a crucial support level at $2.30, aligning with the 100-day EMA. Should this level fail to hold, attention will shift to the $2.20 zone marked by the 200-day EMA. A breach below this point could see prices retreat to $2.05, potentially erasing the gains of the past two months.

Although the RSI hasn't entered oversold territory yet, its decline to the mid-50s indicates weakening momentum. The notable reduction in trading volume further underscores the risk of additional downside if current support levels don't hold.

Potential Causes of the Decline

Market analysts point to multiple factors behind XRPL's activity slump:

• Cooling speculative trading volumes
• Reduced institutional participation amid regulatory uncertainty
• Bitcoin's dominance at higher price levels drawing liquidity from altcoins

The ledger's payment volume charts show a steep decline that could stem from either diminished retail interest or reduced enterprise adoption - both critical components of XRP's value proposition as a payments solution. Market participants should closely monitor the $2.20-$2.30 support range for signs of either recovery or further weakness.

The Path Forward for XRP

A successful rebound from current support levels could see XRP challenge the $2.50 breakout point again. However, failure to hold these levels might trigger a more substantial correction. With 90% of its usage volume evaporated, XRP faces mounting pressure to demonstrate renewed transactional demand. Without signs of revitalized network activity, price action risks following the downward trajectory of its on-chain metrics.