XRP Price Gains 19% Despite 70% Slump in On-Chain Payment Volume

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News XRP bounces Better market positioning Advertisement Despite a sharp decline in on-chain payment activity throughout the XRP Ledger , XRP has experienced an unexpected short-term recovery, reporting a price increase of about 19%. It is difficult for traders to tell whether this move is the start of a long-term recovery or just a technical bounce inside a larger downtrend, because of the divergence between price action and network usage. Advertisement XRP bounces After testing the lower limit of its multi-month descending channel, XRP has recently seen a sharp increase in price. Near local lows around $1.40, buyers intervened forcefully, resulting in a quick recovery toward the $1.60-$1.70 range. Growing volumes of spot and derivatives trading supported the move, suggesting that speculative interest swiftly returned after the selling pressure subsided. XRP/USDT Chart by TradingView In contrast, on-chain data presents a completely different picture. As a result of a slowdown in transactional usage throughout the network, payment counts on the XRP Ledger have decreased by almost 70% from recent highs. Decreased payments usually indicate decreased cross-border payment flows, decreased utility demand, or decreased settlement activity, factors that typically impact price rather than encourage a rally. HOT Stories Crypto Market Review: XRP Consolidates Amid Low Volatility, DOGE Struggles at $0.10, Is Shiba Inu (SHIB) Testing Key Support? U.Today Crypto Digest: Shiba Inu Price Rebounds, Ex-Ripple CTO Calls Bitcoin ‘Dead End’, Goldman Sachs Owns 14% of XRP ETF Better market positioning This discrepancy shows that market positioning rather than fundamental growth may be the primary driver of the current recovery. Especially after prolonged declines, where markets become technically oversold, opportunistic dip-buying, short covering, and liquidation cascades frequently drive such rebounds. Advertisement The most important question for investors right now is sustainability . The move may develop into a more robust reversal if the price keeps rising while the volume of payments stabilizes or starts to recover. However, XRP might go back to consolidation, or even retest recent lows if on-chain activity is still weak and the price stalls below significant resistance zones. As traders evaluate whether momentum buyers can sustain control, volatility is probably going to stay high in the near future. While sustained divergence might suggest that the current bounce is still brittle rather than a verified trend shift, a recovery bolstered by increased ledger activity would indicate better conditions. #XRP #Spot XRP ETF #XRP Ledger #XRP Price Analysis