XRP Ledger, Daily Settlement Volume Drops 90%... Why?

▲ XRP/AI generated image

The daily settlement volume of the XRP Ledger plummeted by approximately 90% just one day after exceeding 1 billion XRP.

According to U.Today, a cryptocurrency specialized media outlet, on August 3 (local time), the inter-account settlement volume of the XRP Ledger surpassed 1 billion XRP on August 1. However, it decreased to approximately 100 million XRP a day later. This means that the record trading volume returned to its original level in a short period.

The surge was attributed to large-scale institutional transfers, corporate fund operations, and exchange-related transactions. Analysis suggests that it is more likely to be a one-off large transaction rather than sustained actual user demand. A decrease in settlement volume does not immediately mean a decrease in network users.

On the XRP Ledger, there has been a recurring pattern where transaction metrics temporarily surge and then return to the long-term average. It is difficult to confirm network growth trends with only one-off large transfers. Market sentiment can only change if high settlement volumes are sustained.

The technical trend of XRP is also showing bearish signals. XRP failed to maintain the short-term uptrend line that had supported its recovery in late July. It fell below the 26-day exponential moving average, and the 50-day exponential moving average of $1.1 is acting as a resistance level. With it also falling below the 100-day and 200-day moving averages, the overall trend is favorable to sellers.

The Relative Strength Index (RSI) is around 44, not yet entering the oversold zone. The short-term support zone is between $1.05 and $1.06. If this zone breaks, downward pressure could increase to $1. Conversely, if it recovers $1.1, the next resistance level will be $1.2, where the 100-day moving average is located.

[Key Article Summary]

-The XRP Ledger's daily settlement volume plummeted by approximately 90% just one day after surpassing 1 billion XRP.

-The surge in settlement volume was suggested to be a one-off large transfer by institutions or exchanges rather than long-term user demand.

-XRP is expected to have $1.05 to $1.06 as its support level, and whether it recovers $1.1 will determine its short-term trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*