XRP is under pressure — and now the numbers confirm it. Within just one day, its on-chain payment volume plummeted by nearly 300 million tokens. Earlier this week, over 700 million XRP were being processed daily, but by May 22, the number had dropped to just 412 million. What’s behind this dramatic fall?
🔹 Technical Breakout Meets Market Uncertainty
XRP recently broke out of a months-long descending channel. After surging above the 50-day and 100-day exponential moving averages (EMAs), the price is now consolidating below the important $2.50 level. Another key milestone was the reclaiming of the 200 EMA — often seen as a medium- to long-term trend reversal indicator.
🔹 Price Rises Without Utility Backing?
Despite bullish technical signals, XRP’s payment volume — a key measure of real-world usage — has sharply declined. This disconnect between rising prices and falling usage might reflect weakening institutional demand or lower user engagement. In early May, volumes surged above 700 million XRP, mirroring price gains. Now, the two trends are diverging.
🔹 What’s Next? Watch the $2.30–$2.35 Zone
For XRP to sustain momentum, it must stay above the $2.30–$2.35 support range, which aligns with the 100 EMA and the previous breakout zone. A bounce from this level could open the door to $2.60 and beyond. But a drop below may send the price sliding toward $2.15–$2.20.
🔹 A Key Altcoin Market Indicator
As one of the main utility-focused payment tokens, XRP often serves as a broader indicator for the altcoin market. Its transaction volume frequently reflects investor sentiment around crypto’s real-world use cases versus pure speculation.
🔹 RSI Shows No Exhaustion — But Questions Remain
The Relative Strength Index (RSI) remains below the overbought zone, with no signs of bearish divergence — suggesting there’s still room for upward movement. However, without stronger on-chain activity, this rally could end up being a short-lived bounce.
👉 Summary: XRP needs a rebound in on-chain usage to turn this technical breakout into a sustainable rally. Without it, the current surge may not last.
Want to know where XRP could go next? Keep your eyes on network usage — and watch the volume.
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