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.
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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.
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