As on-chain metrics start to show red flags, XRP's recent surge may be waning. The XRP Ledger's decline in daily payment volume, which has now dropped below $1 billion, is the most obvious warning sign. In sharp contrast to the steady multi-billion peak prices over the previous three weeks, the volume of XRP payments reached about 986 million as of July 28.
Activity wearing thin
This indicator shows how much XRP is being transferred between accounts and indicates a decline in institutional engagement and overall user activity when it falls off significantly. In summary: less momentum, less interest and less money in motion. Technically, things do not appear to be looking good either. After recently reaching a high of $3.70, the price of XRP is currently trading at about $3.16.
The parabolic run has slowed, and the price stagnation is accompanied by a descending volume pattern that points to a classic case of exhaustion. RSI indicators remain in overheated territory, and if new demand does not emerge, a more significant cooldown may be imminent.
Potential cause
Despite a few exceptions such as Ethereum and Solana, which continue to attract significant inflows, this decline in activity coincides with a general slowdown in interest in altcoins. The decline in payments volume for XRP is more likely due to deteriorating fundamentals as much as price.
The assets placed in the current cycle become more precarious if it is unable to sustain interest from high-volume traders. Even worse, the total volume of trading on the cryptocurrency market is starting to drop, which suggests that money is either pulling out of altcoins or sitting on the sidelines.
XRP needs to re-attract network activity and liquidity at scale in order to prevent deeper retracements; otherwise, the recent bull run runs the risk of becoming just another failed breakout. XRP is currently outside the billionaire club, which could indicate that the rally is coming to an early end unless something changes quickly.
