According to U.Today, the volume of XRP payments between accounts has significantly decreased over the past four days, dropping by more than two million. This decline follows a period of heightened activity on the XRP Ledger, raising concerns about the sustainability of the recent price increase and on-chain performance. Earlier this month, XRP experienced a notable rise in active accounts, completed transactions, and XRP burned on fees, coinciding with a remarkable price spike. However, the recent drop in payment volume may suggest a halt in transactions or a shift in market participant behavior.
In early November, the payment volume graph displayed significant peaks, likely driven by increased trading and whale movements, but these have since diminished. The inability of XRP to maintain its steep upward trajectory could indicate that the buying momentum has waned. A decline in payment volumes is often linked to institutional and retail participants not following through. Despite this, XRP has managed to maintain a trading level of approximately $1.11, following its impressive rise from $0.50 earlier this month. This stability, despite reduced payment volume, suggests that the overall market sentiment remains cautiously optimistic.
The volume profile supports this view, showing lower trading activity compared to the rising phase. Additionally, the asset remains in the overbought zone according to the Relative Strength Index (RSI), which could indicate a potential correction. Key levels to monitor include $0.90 and $0.78 if XRP fails to maintain support at $1.00. Despite the current on-chain situation, XRP continues to be one of the strongest assets in the market and could potentially lead a swift market ascent.
