XRP Loses 75% On-Chain Volume: What Just Happened?
Emily HarrisXRP losing major portion of its volume on-chain, but there's more[...]
Declining XRP Transactions Suggest Market Recalibration
Recent on-chain data reveals a dramatic decrease in XRP transactions, plummeting from over 400 million to only around 100 million. This sudden decline points to a potential market recalibration and a notable shift in activity. Such a sharp change in on-chain volume often indicates a shift in sentiment or the beginning of a broader market cooling.
The data shows a noticeable drop in activity in May, particularly after the 20th. By May 29, the volume that had previously regularly exceeded 400 million had dropped to approximately 177 million XRP. This significant decline in total transactions could be the result of profit-taking or investor caution following the price rallies earlier this year.
XRP Price Supported by Moving Averages
Examining XRP's price performance, we find that it is primarily supported by the 50-day EMA and the 100-day EMA on the daily chart, with the price currently sitting between $2.29 and $2.30. The structure of XRP has benefited greatly from these moving averages, which serve as dynamic support levels that have prevented further price declines thus far. A sharper correction would likely be triggered by a close below these EMAs, which might bring XRP closer to the $2.07 support zone.
Bearish Signals and Potential Consolidation
The volume is also muted, suggesting a lack of confidence among traders and decreased speculative interest, and the RSI indicators are displaying moderate bearishness, remaining below the neutral 50 mark. This current configuration is vulnerable, and XRP may lose its $2 support if the recent decline in on-chain activity is a sign of decreased market participation.
However, XRP may enter a consolidation phase, providing a short-term opportunity for price recovery or sideways movement if it can maintain above these crucial EMAs and if payment volumes stabilize or increase. For now, the attention remains on the $2.25 and $2.07 levels. Traders should anticipate a decline in value if those supports break, but XRP may try to recover some of its prior strength if they hold. It is important for traders to remain vigilant and ready for unexpected fluctuations in volatility.
