Ripple’s XRP Ledger Hits Rough Patch as Network Activity Tanks

Ripple’s once-buzzing XRP Ledger grinds to a crawl—transaction volumes nosedive as developers flee slower than hedge funds from a sinking asset.

Is this the quiet before the storm, or just another crypto project learning the hard way that hype doesn’t pay the nodes?

XRP Ledger Activity Decline: Underlying Causes

In the past three months, the number of transactions on the XRP Ledger has steadily decreased. Data reveals a significant drop in active accounts and coin transfers, especially since April. Analysts attribute this situation to several fundamental reasons.

The first reason is the ongoing regulatory uncertainties in the United States, particularly the prolonged court case between Ripple$2 Labs and the SEC, which has weakened institutional interest in XRP. As a result, banks and payment systems approach using XRP as a “bridge currency” with caution.

Secondly, Bitcoin’s rise siphons liquidity from the altcoin market. As the largest cryptocurrency continues its record-breaking journey, investors’ risk appetite shifts toward Bitcoin$107,516, weakening technical indicators for altcoins like XRP.

XRP Price Analysis and Key Levels

XRP’s price movements indicate a critical technical threshold. At the beginning of May, the altcoin tested the $2.50 level but has recently been confined within the $2.30 – $2.40 range. This range coincides with the 100-day Exponential Moving Average (EMA) and serves as a stage for a resistance-support battle.

The price chart identifies $2.20 as a significant psychological support level, corresponding with the 200-day EMA. A sustained break below this level could risk driving the price down to $2.05. The Relative Strength Index (RSI) hovers around 54, indicating momentum approaching a neutral zone. However, the drop in transaction volume could signal sellers beginning to gain control.