XRP Ledger Activity Drops to 90%: What’s the Impact?

Updated

May 26, 2025

Gambar XRP Ledger Activity Drops to 90%: What’s the Impact?

Jakarta, Pintu News – XRP Ledger’s on-chain activity has seen a drastic drop of 90% from its most recent peak, raising concerns regarding usage and overall network health. This decline puts Ripple in an unfavorable position, where payment and transaction volumes on the XRP Ledger are virtually non-existent despite the Ripple (XRP) price managing to stay in the $2.30 to $2.40 range.

Causes of XRP Ledger’s Decline in Activity

This decrease in activity on the XRP Ledger was triggered by several factors. First, there was a significant drop in speculative trading volume. This suggests that speculative interest is much greater than actual usage. Secondly, declining institutional usage due to continued regulatory uncertainty also played a role in this decline.

In addition, Bitcoin’s dominance at high levels has sucked liquidity from altcoins such as Ripple (XRP), exacerbating the situation. Payment volumes on the ledger are showing a sharp decline, which could be attributed to a drop in retail demand or reduced corporate usage. These two factors are crucial to the central narrative of Ripple (XRP) as a payment token. Investors should now watch the $2.20 and $2.30 support zones closely.

Also Read: PEPE Coin (PEPE) Shows Bullish Signal, What’s the Secret?

Ripple (XRP) Price Technical Analysis

In early May, Ripple (XRP) showed promising signs by breaking out of a descending wedge pattern. However, since then, the price has been stuck in an increasingly tight consolidation. At $2.30, Ripple (XRP) is testing the support zone which is also the 100-day EMA (Exponential Moving Average). The 200-day EMA suggests the next area of interest is around $2.20.

The entire bullish setup of the past two months could be jeopardized if the price slips below that, which would take the price to the $2.05 level. Although not oversold yet, the Relative Strength Index (RSI) has dropped to the mid-50s, indicating that momentum has slowed down. In addition, volume has decreased significantly, highlighting the possibility of further declines if support breaks.

Future Potential and Investor Strategies

If Ripple (XRP) can bounce off this support level, there is a possibility of retesting the $2.50 breakout point. However, failure to maintain this support could lead to a deeper retracement. Given that 90% of its usage volume has already been lost, it is imperative for Ripple (XRP) to show that it can trigger real-world transactions again. Otherwise, price action may soon follow the on-chain trend.

Conclusion

With a significant drop in activity on the XRP Ledger, the future of Ripple (XRP) seems to depend on its ability to restore trust and utility in the crypto ecosystem. Investors and users should remain vigilant to further developments and adjust their strategies according to changing market conditions.

Also Read: Will Pi Token (PI) Surge Beyond $0.9? Check out the Analysis!

That’s the latest information about crypto. Follow us on Google News for the latest crypto and blockchain technology updates. Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now.

Experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro. Pintu Pro Futures is also available, where you can buy bitcoin leverage, trade btc futures, eth futures and sol futures easily from your desktop!

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.