7 Out of 8 XRP Digits Are Decreasing Sharply: What Is Happening?

XRP is facing a sharp decline, with seven out of eight key on-chain metrics showing significant decreases. Although the asset has demonstrated the ability to recover in the past, the current state of the XRP network is raising concerns among both investors and analysts. The downward trend is also reflected in the price chart, indicating that XRP is struggling to hold key support levels. There is cause for concern about the overall asset interaction level as the XRP chain data shows a significant decrease in network activity. Over the past month, there has been a consistent decline in the total number of payments made between accounts, indicating a slowdown in transaction volume. This is further supported by a decrease in payment volume, indicating less demand for XRP in daily transactions.

Furthermore, the decreasing number of active accounts participating in the ecosystem suggests a declining user interest. In addition to transactional activity, the reduction in the total number of XRP burned as fees indicates a decreasing network congestion. This points to a less utilized network due to reduced transaction processing demand. The XRP price is currently fluctuating around $2.48, showing signs of weakness as it struggles to maintain an upward trajectory. The asset recently broke below the uptrend line, which previously acted as a strong support level. With the 50-day EMA serving as a resistance near $2.69, XRP is currently facing a tough battle to regain upward momentum. The next key support level is at $2.29, and if XRP fails to hold this level, it could potentially drop to $1.76. On the positive side, it needs to surpass $2.73 to restore confidence for investors. The declining on-chain activity is raising concerns about the long-term sustainability of XRP adoption. While the network is still operational, reduced usage could lead to prolonged price stagnation. However, if market sentiment improves and XRP can regain lost momentum, there is still potential for a turnaround.