This week, XRP’s on-chain activity has suffered greatly. Recent data shows that payment volume, a key measure of network utility, has dropped by almost 70%. XRP transfers between accounts have drastically decreased, falling from over 700 million daily transactions at the beginning of October to about 230 million by the end of the month.

This sharp decline in transactional flow raises questions about the network demand and the general perception of Ripple’s ecosystem.

### Payment Volumes Drop: Expectations

The drop in payment volume could indicate either a short-term slowdown in remittance or institutional activity, or a more widespread decline in organic usage as XRP attempts to recover its market share. Historically, periods of price stagnation have been accompanied by prolonged declines in XRP’s on-chain metrics, and the current situation appears to be no exception.

### Technical Overview

Technically, XRP is currently trading around $2.49, sitting just above short-term support but still below significant resistance levels. Key resistance points include the 100-day and 200-day moving averages, which stand at approximately $2.78 and $2.81, respectively.

### Bearish Sentiment Prevails

Bearish sentiment remains prevalent. XRP recently attempted to break out of its descending wedge pattern but was unable to maintain momentum above the trendline. The Relative Strength Index (RSI) is at 45, signaling weak momentum. Although the RSI is in a neutral range, it leans slightly toward bearish territory.

A noticeable slowdown in on-chain throughput may limit XRP’s upside potential in the near term. The $2.40–$2.35 range continues to serve as important short-term support. Should this support give way, the token could experience a correction toward $2.10 or even lower if selling pressure intensifies.

Conversely, regaining the $2.80 level with a confirmed breakout would signal the start of a recovery and a resurgence in network demand.

### Outlook

The network may currently be undergoing a period of adjustment following speculative overuse earlier in the month—an explanation for the steep drop in transaction activity. Investors should prepare for a phase of consolidation or a slight correction before any significant recovery takes place, as both technical indicators and on-chain data advise caution.

Stay tuned for further updates as the situation evolves.
https://u.today/xrps-key-metric-shows-700000000-drop-what-could-it-mean