XRP recently experienced a significant downturn in its recovery attempt as it failed to overcome critical resistance levels. Initially, the popular altcoin gained slight momentum by reaching $2.97 on September 23. However, it soon reversed direction, and current on-chain data corroborate this downward trend, putting XRP’s price under pressure.
XRP’s On-Chain Data Reveals a Dramatic Decline
According to XRPScan, XRP’s network payment volume plummeted by over 90% in just one day. While approximately 11.8 billion XRP was transferred between accounts on September 23, this number has dropped to 186 million XRP today. The steep decline in payment volume indicates a rapid decrease in transaction intensity.
The network also witnessed a similar trend in transaction numbers. While the network recently processed 10.9 million daily transactions, today it only handled 500,000 transactions. This reduction marks one of the most significant contractions seen since the beginning of the year, reflecting decreased activity from both individual users and large wallets.
The weakening on-chain data, in conjunction with price movements, indicates that the appetite for trading is diminishing among market participants. This drop in transaction volume stands out as an element weakening XRP’s chances of a robust recovery.
Struggles at the $3 Resistance Level
The current price chart signifies that XRP is confronting strong resistance at the $3.00 level. While the altcoin attempts to hold above the 200-day EMA at $2.87, selling pressure at the $3 mark hinders progress toward recovery. The lapse in upward momentum reveals that XRP cannot maintain a position above this level.
Experts believe the recovery potential remains low unless transaction volume and network activity rise. Furthermore, failure to establish a stable movement above the $3.00 threshold could bring the risk of retesting the $2.59 support to the forefront.
The dwindling blockchain activity increases the likelihood of prolonged lateral movement or a steeper decline in XRP’s price. Unless the critical $3.00 level is surpassed, it is predicted that the downward pressure will persist.
