XRP Ledger Bounces by 20% in Key Payments Metric, Markets New Week's Reversal

With a discernible increase in on-chain activity, XRP is starting the new week with early indications of stabilization. The quantity of payments made between accounts, one of the important metrics, has increased by about 20% following a precipitous drop in the preceding phase.

XRP's direction

This change implies that network usage is starting to pick up steam following a period of contraction, but it does not by itself signify a complete recovery. Payment volume, however, exhibits a comparable pattern. The most recent data points show that activity is no longer collapsing after multiple spikes and a cooldown. Rather, there is a slight upward bias as it levels out.

XRP/USDT Chart by TradingView

This is significant because XRP's extended decline coincided with earlier weakness in these metrics. Price and network activity are currently beginning to rebalance. In the larger context of the price chart, XRP is still under pressure. The long-term trend has not reversed, and the asset is still trading below major moving averages.

Decline slows down

But the current structure differs from the decline that occurred earlier. The price has been forming a tight consolidation under declining resistance while maintaining a horizontal support zone around the $1.30-$1.35 range. A directional move is frequently preceded by the compression pattern this produces.

The downward momentum has now considerably slowed, which is the main difference. In line with the stabilization observed in on-chain metrics, selling pressure is no longer increasing. Although buyers are not actively driving the market higher just yet, they are more efficiently absorbing supply than they were previously.

Though confirmation is still needed, the market is preparing for a possible short-term reversal. The case for a recovery move toward higher resistance zones would be strengthened by a break above the declining resistance line and ongoing growth in payment activity.