XRP’s price has reached a crucial technical juncture following its recent rally, stalling at one of the daily chart’s strongest support zones. After a dynamic August surge, the cryptocurrency now faces a period of diminished momentum, compounded by a significant drop in activity on the XRP Ledger.
Price hovers at support zone
Currently, XRP is trading just above $1.35, aligning closely with its long-term moving average near $1.355. This region is further reinforced by a shorter-term moving average close to $1.34, creating a tightly concentrated support zone between $1.33 and $1.36. Market observers view this area as critical for maintaining the overall bullish structure.
Earlier in August, XRP experienced a rapid ascent from around $1.00 to more than $1.50, even briefly reaching $1.70. However, the asset has struggled to return to the $1.45 to $1.50 range in recent sessions, instead posting lower local highs that signal waning upward momentum.
At present, the daily Relative Strength Index (RSI) has dropped to 51.7, falling below its signal average of 58.2. This reading suggests a shift toward more neutral conditions rather than the clear bullishness previously seen.
Declining network activity raises concerns
Recent data reveals that XRP Ledger activity has declined sharply. Successful transactions fell by 59.5% to about 970,200, while overall transactions on the ledger decreased by 55.6% to 1.2 million. Transactions per ledger also dropped by 56.1%, and payments declined by 35.6% to 573,100.
In terms of user metrics, active accounts slid by 5.4% to 13,900, while active users saw a more dramatic drop of 42.3% to 126,200. New account creation remained stable at 2,200.
Indicators tracking user engagement highlight a broad reduction in activity, with both transactions and active accounts showing sizable declines. While the technical infrastructure of the XRP Ledger remains stable, the decrease in on-chain activity points to weaker underlying momentum.
Despite the substantial drop in usage, the XRP Ledger continues to operate efficiently. The average ledger interval held steady at roughly 3.84 seconds, and a total of 20,600 ledgers were closed, representing a modest 1.2% increase over the previous period.
Key levels and broader industry shift
Market watchers emphasize the importance of the current support band between $1.33 and $1.35. Should XRP break below this level for an extended period, the price may shift toward $1.28, with a significant cluster of moving averages situated in the $1.25 to $1.28 region. Alternatively, a decisive move above $1.45 is needed for the asset to reestablish a clear short-term bullish bias, though stabilizing above $1.40 would help reduce near-term downside risks.
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In summary, XRP remains at a critical juncture as traders monitor whether the currency can hold its current support amid falling network activity and shifting market sentiment.
