XRP is rapidly losing its position as a top asset in terms of activity, which is a concerning trend
Given XRP's recent on-chain activity, its momentum is undoubtedly concerning. Data shows that the number of active payments within 24 hours has significantly dropped to only 835,000, compared to the previous surge in network usage. Although XRP still plays an important role in the current market cycle, the decline in activity indicates that transaction usage and demand on its ledger are decreasing.
XRP's on-chain performance
XRP's price performance struggles to keep up with the broader market. While Ethereum and Bitcoin have consistently led the charge and shown strong upward momentum, especially with Ethereum approaching historical highs, XRP's price trend has noticeably lagged with more moderate gains.
ETH's explosive trend has surpassed XRP, highlighting the market's preference for assets with greater momentum and clearer narratives. XRP's price entered a consolidation phase after rising in July, and its daily chart technically shows a symmetrical triangle pattern. This pattern typically signals that a breakout is imminent, but the strength of the breakout remains unclear.
Market performance
A clear breakout above the upward trendline may signal a bullish trend, but traders will closely monitor the accompanying volume. Without a significant surge in volume, any breakout could be a false signal leading to a quick reversal. Currently, the 50-day moving average and support levels to watch as buffers are $2.87 and $2.69, respectively.
A sustained breakthrough of $3.09 may stimulate further buying pressure, but if network activity does not see a larger surge, this trend may not last long. In fact, Ethereum's dominant position and Bitcoin's ongoing resilience are overshadowing Ripple's current market influence.
In the current cycle, XRP faces the risk of falling further behind unless network activity increases and price trends align with greater momentum. The symmetrical triangle may currently form a short-term structure, but given the insufficient ledger activity, it remains unclear whether XRP can fully benefit.
