XRP Ledger Drops off 50% From Most Recent Pre-ATH Level: How It Affects Price

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Recent on-chain metrics reveal why XRP is trapped in a low-momentum phase. Network usage has now drastically decreased, roughly 50% from its most recent pre-ATH levels, following a sudden spike in activity that nearly brought XRP Ledger to all-time highs. The decline is beginning to show up in the price. In terms of market structure, XRP is still in a more general downtrend, trading below its important moving averages and finding it difficult to create consistent buying pressure. The chart displays a weak consolidation range, with sporadic attempts to create higher lows but no significant breakout. Volatility is contracting rather than increasing, as the price is hovering around support. To this stagnation, the on-chain data provides context. Recently, the number of successful transactions reached a peak of over four million, but it has since drastically decreased to about 2.2 million. Simultaneously, the average number of transactions per ledger has decreased from over 200 to less than 100. This type of contraction indicates a cooling-off period in network usage and is not noise. This is significant because XRP has traditionally relied less on pure conjecture and more on transactional utility narratives. Price stability, or even upside expansion, is typically supported when activity increases — one of the main pillars that could provide momentum is eliminated when it drops off this precipitously. As of right now, the previously observed disconnect,...