XRP is under pressure—and the latest data makes that clear. In just 24 hours, XRP’s on-chain payment volume plunged by nearly 300 million tokens. Earlier this week, daily volume topped 700 million XRP, but by May 22, it dropped sharply to just 412 million. So, what’s behind this sudden dip?
🔹 Technical Breakout vs. Market Doubt
XRP recently broke out of a long-term descending channel, surging above the 50-day and 100-day EMAs and reclaiming the critical 200 EMA—a sign of possible trend reversal. Price action is now consolidating just below the key $2.50 level.
🔹 Price Rising, But Utility Dropping?
Despite strong technicals, XRP’s payment volume—a key indicator of real-world use—has cratered. This growing gap between price movement and utility could hint at waning institutional activity or falling user engagement. Earlier in May, volume climbed alongside price. Now, that alignment is fading.
🔹 Key Levels to Watch: $2.30–$2.35 Support
For XRP to maintain momentum, it must hold above the $2.30–$2.35 range—home to the 100 EMA and the previous breakout zone. A bounce here could spark a run toward $2.60. But if support fails, XRP may test the $2.15–$2.20 zone next.
🔹 More Than Just XRP — A Market Signal
As one of the leading utility tokens, XRP is often viewed as a bellwether for the broader altcoin market. Its falling transaction volume might reflect fading confidence in real-world crypto use cases vs. speculation-driven rallies.
🔹 RSI Says There’s Still Fuel — But Risks Remain
The Relative Strength Index (RSI) is holding below the overbought threshold, with no signs of bearish divergence—indicating room for further upside. Still, without a rebound in network usage, this rally may be running on fumes.
👉 Bottom Line:
XRP’s technical setup looks promising—but without a return of strong on-chain activity, the breakout could stall. Keep a close eye on payment volume to gauge whether this rally has real legs.
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Disclaimer:
This article is for educational purposes only and should not be considered financial or investment advice. Always do your own research—cryptocurrency
investments carry risk.