XRP's recent attempts at a price rebound are encountering significant challenges, with on-chain data indicating a substantial weakening of network activity. This concerning trend suggests that fundamental support for a sustained rally may be diminishing, leading to a cautious outlook for XRP's performance into 2025.
Sharp Decline in Payment Volume
A crucial on-chain metric, XRP's payment volume, has reportedly plummeted by a dramatic 90% in a short period. This sharp contraction, from over 1 billion XRP to approximately 114 million XRP on June 8, is a significant red flag. Payment volume is a key indicator of actual utility and network engagement, and such a drastic drop suggests a considerable slowdown in institutional activity or a waning demand for XRP's core functionality.
Technical Support Under Pressure
While XRP has shown some resilience, bouncing off its 200-day Exponential Moving Average (EMA) around $2.08, the price remains trapped between key resistance levels at $2.26 and $2.55. Despite breaking out of a descending triangle pattern, a bullish signal, the failure to hold above other important moving averages like the 50 and 100 EMA raises questions about the strength of this reversal. Volume indicators also suggest weak follow-through, indicating a lack of conviction from buyers.
Bearish Signals for 2025 Outlook
The combination of plummeting on-chain activity and struggling technical indicators paints a challenging picture for XRP's rebound potential heading into 2025. Analysts warn that if XRP fails to maintain support above its 200 EMA, it could face further drops toward psychological support at $2.00 or even lower to $1.80. The present weakness might be a "shakeout" to remove weaker holders, but a definitive recovery requires a significant increase in volume and a break above key resistance.
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XRP's Rebound Potential Faces Headwinds Amidst Weakening On-Chain Activity
XRP's recent attempts at a price rebound are encountering significant challenges, with on-chain data indicating a substantial weakening of network activity. This concerning trend suggests that fundamental support for a sustained rally may be diminishing, leading to a cautious outlook for XRP's performance into 2025.
Sharp Decline in Payment Volume
A crucial on-chain metric, XRP's payment volume, has reportedly plummeted by a dramatic 90% in a short period. This sharp contraction, from over 1 billion XRP to approximately 114 million XRP on June 8, is a significant red flag. Payment volume is a key indicator of actual utility and network engagement, and such a drastic drop suggests a considerable slowdown in institutional activity or a waning demand for XRP's core functionality.
Technical Support Under Pressure
While XRP has shown some resilience, bouncing off its 200-day Exponential Moving Average (EMA) around $2.08, the price remains trapped between key resistance levels at $2.26 and $2.55. Despite breaking out of a descending triangle pattern, a bullish signal, the failure to hold above other important moving averages like the 50 and 100 EMA raises questions about the strength of this reversal. Volume indicators also suggest weak follow-through, indicating a lack of conviction from buyers.
Bearish Signals for 2025 Outlook
The combination of plummeting on-chain activity and struggling technical indicators paints a challenging picture for XRP's rebound potential heading into 2025. Analysts warn that if XRP fails to maintain support above its 200 EMA, it could face further drops toward psychological support at $2.00 or even lower to $1.80. The present weakness might be a "shakeout" to remove weaker holders, but a definitive recovery requires a significant increase in volume and a break above key resistance.