Why did the network lose so much?

With the number of completed transactions decreasing by about one million XRP The network has recently shown a significant decline in transaction activity. This decline follows a spike in activity earlier this year as shown by on-chain metrics. Although the XRP blockchain has seen long periods of high throughput, the low activity raises the question of what the market is thinking and what factors might influence network.

Given the recent spikes in prices and activity, this decrease in transaction volume may indicate a calming phase. These times often indicate that traders and investors are reversing course, perhaps in anticipation of new catalysts to revive the market. On the other hand, this change may be the result of a short decline in demand for the use of XRP in transfers and payments, which it usually feeds into its network. Use.

XRP is trading near $3.13 on the price chart, maintaining above the important moving averages. Even with this relatively strong position, the asset still faces crucial resistance at $3.30. If the lower high pattern – a bearish signal that often precedes corrections – is invalidated, a break above this level may indicate that the uptrend will continue. On the other hand, if XRP cannot rise above $3.30, it may enter a period of consolidation or even a downtrend.

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Keeping an eye on the support levels at $2.80 and $2.50 is worth paying attention to as they could act as buffers in the event of a pullback. These levels could be tested in the near future if there is not enough trading volume and momentum. All things considered, although decreased network activity indicates a slowdown, XRP Not necessarily doomed.

XRP may use this momentum to test its resistance levels if the market gains confidence and transaction volumes increase. Investors should now monitor $3.30 closely and look for signs of new activity in price action and on-chain.