XRP Ledger, Payment Volume Plunges 75%..."Thought it was a rebound, but it's a crisis"

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XRP Ledger's payment volume plummeted by up to 75% in a short period, raising concerns about slowing network activity.

U.Today reported on May 5 (local time) that XRP Ledger's payment volume sharply declined by approximately 70% to 75% in a recent short period. This signifies a significant contraction in transaction activity, and is interpreted as either a cooling phase after high activity, a decrease in participants, or weakened demand for transfers.

Price trends and network activity are diverging. U.Today analyzed that XRP is maintaining a narrow sideways movement around $1.30 to $1.40, and remains below key moving averages, indicating that the overall trend is still under pressure. Attempts to rise continue to meet resistance, and the market structure makes it difficult to view it as fully recovered.

The decrease in payment volume acts as a more sensitive variable for XRP. As the XRP Ledger is a network designed around payment and settlement functions, a decrease in usage can directly impact how the market values the ledger. U.Today pointed out that because XRP relies more heavily on real-world utility than other assets, a contraction in payment activity holds more significance than a mere decline in a metric.

However, an interpretation was also presented that this sharp drop in payment volume does not necessarily imply a structural bearish trend. If the previous surge in activity exceeded sustainable levels, the current phase could be a normalization of network usage. U.Today explained that the current trend might be a readjustment phase after overheating, rather than a complete bearish signal.

In terms of chart structure, XRP remains in a compression zone. While the downtrend resistance line continues to lower, the price appears to be holding firm, forming a horizontal base. U.Today noted that investors should watch two things in the future. The first is whether payment activity stabilizes or further declines. If on-chain usage recovers, it could strengthen the bullish argument.

The second is whether the price defends the $1 to $1.40 range. If this range is maintained, XRP's price foundation will be preserved, but losing this range increases the likelihood of further declines. The sharp drop in XRP Ledger's payment volume indicates a situation where both network utility and price structure are simultaneously being tested.

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