XRP Faces Major Setback as 730 Million Tokens Exit Network
XRP Faces Major Setback as 730 Million Tokens Exit Network
XRP's recovery efforts have hit a roadblock as fresh data reveals a massive 730 million XRP outflow from the network’s payment volume. This decline in transactional activity raises concerns about investor sentiment and casts doubt on the asset’s ability to sustain its upward movement.
Despite attempts to break through key resistance levels, XRP has struggled to maintain momentum. Unlike the broader market, which has seen some recovery, XRP’s price has remained stagnant at approximately $2.32. The asset faces persistent resistance from the 50-day and 100-day moving averages, making it difficult to reclaim lost ground. A pattern of lower highs on the price chart suggests diminishing buying pressure.
A particularly alarming factor in XRP’s sluggish performance is the sharp drop in on-chain payment volume. The 730 million XRP reduction signals weakening network activity, which could indicate reduced adoption and utility—both critical for sustained price appreciation. A decline of this magnitude raises red flags about the network’s overall health.
Historically, strong network engagement has been a precursor to market rallies. However, the latest figures suggest that capital flow and user participation within the XRP ecosystem remain lackluster, even after previous price surges. If this trend continues, the asset could face additional downside risks. To regain bullish momentum, XRP must reclaim crucial resistance levels at $2.50 and $2.70.
A breakout beyond these key thresholds may be possible if whale accumulation increases or trading volume sees a significant uptick. Conversely, failure to hold above $2.30 could lead to further declines, potentially pushing the price toward $2.10 or even $1.85. For long-term growth, XRP’s adoption and utility need to improve. In the coming days, investors and analysts will closely monitor on-chain metrics to gauge whether the asset can mount a recovery or continue its downward trajectory.
