XRP Loses 300 Million in 24 Hours: Here's What Caused It

XRP Faces Declining Payment Volume Despite Price Recovery Efforts

In recent days, XRP has seen a dramatic drop in payment volume, falling from over 700 million tokens earlier this week to approximately 412 million on May 22. This nearly 300 million token decrease in just one day raises concerns, especially as the cryptocurrency continues to test key technical levels on its price chart.

While XRP has technically broken out of a months-long downward channel and climbed above its 50-day and 100-day exponential moving averages (EMAs), its payment volume—a vital metric for assessing real-world usage—has sharply declined. This disconnect between price movement and transactional activity suggests either a temporary slowdown in institutional interest or reduced user engagement, both of which are crucial for a utility-driven asset like XRP.

Earlier this month, XRP's payment volume reached notable highs, with several surges above 700 million tokens aligning with price breakouts. The recent drop in volume indicates that the rally may be losing momentum unless usage rebounds. The $2.30-$2.35 range, which aligns with the 100 EMA and a prior breakout zone, currently serves as support for XRP. A return to $2.60 or higher remains feasible as long as the price holds above this level. However, if this support fails, a decline toward $2.15-$2.20 could follow.

As a leading indicator for payment-focused cryptocurrencies, XRP's volume trends often reflect broader market sentiment about the balance between real-world utility and speculative trading. If network activity improves, another upward move is possible, especially since the Relative Strength Index (RSI) remains below overbought territory without showing strong bearish signals.

Ultimately, XRP needs sustained on-chain engagement to validate its breakout. Without it, this technical rally risks becoming just another short-lived rebound.