XRP Network Activity and Price Decline Signal Bearish Market Sentiment

XRP’s network activity has dropped sharply in recent weeks, signaling a potential shift in market sentiment and declining transactional demand. On-chain data shows that XRP’s payment volume — the total amount transferred between accounts — has fallen nearly 90% from its early October peak to just over 200 million XRP. This steep decline reflects a broader cooling trend within the XRP ecosystem and reduced user engagement.

In addition to falling payment volumes, the number of daily transactions has also plummeted. Data indicates a drop from over one million transactions per day in early October to less than 500,000 currently. This sharp decline raises questions about weakening institutional participation and slowing network-level adoption, especially amid a broader downturn in cryptocurrency market sentiment.

From a technical perspective, XRP’s price action mirrors this slowdown. The token is currently trading around $2.41 after losing nearly 5% in the past 24 hours and breaking below its short-term ascending support line. XRP continues to face resistance below its 200-day moving average near the $2.70–$2.80 range. Key indicators, such as the RSI at 41, highlight diminishing buying pressure and suggest the potential for further downside momentum if support at the $2.20 level fails to hold.

With bearish technicals aligning with deteriorating on-chain metrics, XRP faces the risk of retesting the crucial $2.00 psychological support. A break below this level could lead to deeper losses unless transaction activity and network liquidity show a strong rebound. While XRP has historically recovered from periods of contraction, the current combination of declining volume, weakened investor sentiment, and lack of positive catalysts paints a cautious picture for the cryptocurrency’s short-term outlook.