The recent drastic drop in transaction volume on Ripple’s XRP Ledger has sparked concerns regarding the use and health of the network.
Despite XRP’s price showing resistance in the $2.30 – $2.40 range, the near-nullification of payment and transaction volumes suggests that speculative interest is overshadowing real-world use. Experts highlight factors such as regulatory uncertainties, Bitcoin’s market dominance, and weak institutional demand as contributing to this decline.
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 
$2Labs 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 
$0.000039, 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.
