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According to recent XRP on-chain data, the number of transactions has drastically decreased, falling from over 400 million XRP to only about 100 million. This sudden decline suggests a possible market recalibration and a notable shift in activity. Such a sharp change in on-chain volume usually indicates a change in sentiment or the start of a more general cooling of the market.
There is a noticeable drop in activity in May, especially after the 20th, according to the on-chain payment volume data that has been provided. By May 29 the volume that had previously regularly risen above 400 million had dropped to about 177 million XRP. This points to a sharp decline in total transactions, which could be the result of profit-taking or investor caution following lengthy price rallies earlier this year.
When examining XRP's price performance we find that it is primarily supported by the 50-day EMA and the 100-day EMA on the daily chart, with the price sitting between $2.29 and $2.30. The structure of XRP has benefited greatly from these moving averages, which serve as dynamic support levels that have prevented further price declines thus far. A sharper correction would probably be triggered by a close below these EMAs, which might bring XRP closer to the $2.07 support zone.
The volume is also muted, suggesting a lack of confidence among traders and decreased speculative interest, and the RSI indicators are displaying moderate bearishness, remaining below the neutral 50 mark. The current configuration is vulnerable. XRP may lose its $2 support if the recent decline in on-chain activity is a sign of decreased market participation.
XRP may enter a consolidation phase providing a short-term opportunity for price recovery or sideways movement if it can maintain above these crucial EMAs and if payment volumes stabilize or increase. Right now, everyone's attention is still on the $2.25 and $2.07 levels. Anticipate a decline in value if those supports break. XRP may try to recover some of its prior strength if they hold. It is important for traders to remain vigilant and ready for unexpected fluctuations in volatility.