Don’t invest in XRP at the moment. The market is highly indecisive about the token. The unwarranted 300 million trading volume drop might be a shadow of another pullback, possibly below $1.90.
What’s happened to XRPP’s network again? The on-chain indicator signposts shrinking XRP network activity. Cross-account payments have fallen by a record amount. In April, the XRP exchange reached a staggering 800 million XRP. It receded but peaked again this month at a significant 500 million XRP.
However, the fall was unexpected. From 800 million XRP on April 30, 2025, the exchange volume came down to a meager 527 million XRP.
# The Huge Impact on XRP Price
The short-term price activity of XRP results from the reduction in the transactional volume. For platforms like XRP, the payment volume expresses institutional and retail activities.
If the number of transactions or engagements over the platform consistently declines, the price will also drop sharply. If the market is comparatively bullish, price growth may stall.
# Effect of Low On-Chain Trading Activity
A sustained decline in on-chain activity is stopping the bullish phase. This might not always be reflected in the price. For example, the XRP trading volume has dropped 37.6% in the last 24 hours, while the coin’s price has only reduced by a meager 0.90%.
The current XRP price is $2.22, which seems optimistic. The increasing support around the token and a drop in resistance have resulted in price stability. However, there have been abundant price actions for weeks now. Investors assume that a price breakout can happen soon.
# What do The Indices Say?
The RSI index hints at recent indecisiveness in the market. A possible fall in momentum also implies the tapering index figure of 53. Experts particularly point to the coin’s inability to go past the resistance band of $2.20.
What’s worse, sources say that there might be a price consolidation around the corner. To vouch for that, experts hint at closely clustered EMA and a low trading volume.
If the institutional support is gone, XRP may start dropping. The token may come down to $2.00 or even $1.98.
# The Final Warning!
The volume drop of an average of 300 million indicates a loose market fit. The technical charts do not indicate a decisive trend.
However, the broader market projects that there are absolutely no chances of a bullish breakout. Instead, a pullback might be imminent. We can wait for the coin to break the resistance band of $2.20. If that happens, the market can be hopeful around XRP again!
