XRP's on-chain payment volume has plunged by 300 million over the past 24 hours, and the reasons behind it are worth exploring. Data shows that at the beginning of this week, XRP's daily processing volume was still above 700 million, but it suddenly dropped to 412 million on May 22.
This cliff-like drop reveals two key issues:
First, from a technical perspective, although XRP has broken through the 50-day and 100-day moving averages, it has always been suppressed by the key resistance level of $2.50. More troubling is the 200-day moving average, a long-term indicator—after breaking through, it lacks sustained momentum, indicating serious divergence in market expectations for future trends.
Even more bizarre is the divergence between price and actual usage. When the trading volume broke through 700 million in early May, it indeed drove the price up. But now the price is stagnant while the trading volume has collapsed. This 'volume-price divergence' either indicates that institutions are quietly withdrawing their investments or exposes the project team's inaction in ecological development.
In the short term, the $2.30-$2.35 range has become a watershed for bulls and bears. If this level holds, there is still a chance to challenge $2.60; once it breaks down, it could likely slide to $2.15. As a bellwether for altcoins, the shrinking trading volume of XRP also reflects the overall lack of practical value in the cryptocurrency market—capital is all about speculation, and no one is truly using these coins.
Although the RSI indicator shows that it is not yet overbought, an increase lacking support from actual usage is like a castle in the air. My judgment is: if on-chain data does not improve in the coming week, this stagnation is likely to end in a sharp decline. After all, in the cryptocurrency market, a boom without real demand is ultimately a bubble.
As the market continues to change, we need to closely monitor market signals and seize new entry opportunities. Like + comment, and I'll take you through the bull market to firmly grasp this round of great opportunity!
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