XRP Ledger Drops 400,000 Payments Out of Nowhere

The $XRP Ledger (XRPL) experienced a sudden drop in payment activity, losing around 400,000 transactions overnight. The drop came during a volatile week for the market as a whole. The reason behind it has not been confirmed. It could be a result of the recent market crash or a reduction in automated or low-value transactions.

Network activity is certainly shaky

Whatever the reason, a drop in network activity is a weak indicator. $XRP's price chart shows the same stress. After falling from about $1.50 earlier this week, $XRP is now trading near $1.3866. On Thursday, it dropped to about $1.32 and subsequently bounced back. A crucial level is the black long-term average near $1.38, and $XRP is right on it.

The line held in September, proving its support. Just below it, the orange average near $1.335 caught the low and serves as the next safety net. The first resistance above the price is marked by the blue average at approximately $1.40 and the cyan average near $1.43.

Weakness might continue

The green line, which follows, is near $1.45. The September high near $1.66 is far away at this moment. With an RSI of approximately 42, the market is weak but not oversold. Volume increased during the decline and is minimal on the rebound.

Up to this point, buyers have failed to show any real strength. For bulls to be optimistic, $XRP needs to close above $1.40 on a daily basis, which would bring it back above the short-term averages. After that, $1.45 and $1.50 are the next targets. For bears, a move below $1.38 would indicate more downside.

After that drop, the next levels to watch are $1.335 and the $1.25 area, which marks the September low. Although the sudden drop in payments is a slight concern, the price is still maintaining its primary support level. Should $XRP stay above $1.38 and network activity become steady, a bounce to $1.45 is likely. If the black line is broken, $1.30 becomes the target.