300,000 XRP Drop Explains Recent Price Tumble: Details

With its price plunging more than 4% in a single day as the asset tries to hold onto its position within a contracting trading range, XRP is once again under pressure. XRP is currently trading at about $2.23 after plummeting from the $2.40 range, losing a sizable amount of its most recent gains and undermining investor confidence. However, below the surface, on-chain dynamics might be providing a hint as to whats happening.

According to on-chain data, daily transactions have significantly decreased by over 300,000 XRP, which is directly related to the most recent price collapse. Network analytics show that after steady activity above the 1-2 million mark earlier in March, the number of executed transactions has dropped precipitously.

XRP/USDT Chart by TradingView

Price sustainability, particularly during periods of consolidation, depends on both user interaction and network engagement, both of which may be declining, as indicated by this decline. The quantity of successful transactions completed has not increased over the last week despite being comparatively steady year over year. This stagnation suggests that although the network is still operational, growth is no longer accelerating.

To put it another way, the enthusiasm that once underpinned bullish narratives is beginning to wane, and momentum is ebbing. Technically speaking, XRPs current chart displays a breakdown below the 50 and 26-day EMAs, as well as a retreat toward the lower limit of its long-running descending channel. The 200 EMA, which is located close to $1.93, is the next crucial support.

Should this level not be maintained, there may be a wider correction and even a bearish breakdown from the multi-month pattern. The significant volume on this sell-off indicates that there is more going on here than just profit-taking. It might be a precursor to panic or institutional offloading linked to the deteriorating on-chain foundations.

The drop of over 300,000 transactions, a technical malfunction and a decline in volume all suggest that XRP is about to enter a vulnerable stage. To protect current support levels, bulls must move quickly; otherwise, they run the risk of seeing the asset continue to decline in the upcoming sessions.