XRP: 500 Million Payment Networks All 'Stopped'... Chain Sell-off if it Fails to Break $1.4

▲ XRP (XRP)

XRP is shocking the market by falling into its worst slump, with both its price and network usage plummeting simultaneously. There's a grim warning that if indicators don't improve, even the 500 million XRP settlement payment threshold could collapse.

According to U.Today, a cryptocurrency specialized media outlet, on May 20 (local time), XRP Ledger data shows a clear slowdown in various activity areas. The frequency of inter-account settlements has been on a downward curve throughout May, and total settlement value also plummeted vertically after a brief surge early this month. This means that the enthusiasm of participants who supported the Ripple ecosystem has completely cooled down.

A more serious issue is the lack of new funds and users flowing in. The number of active addresses has barely maintained the status quo, completely freezing the expansion essential for a bull market. As a growth stagnation, more frightening than a major negative event, has occurred, traders have become extremely sensitive to price weakness.

The current XRP price has been trapped in a narrow prison around $1.35 for several months. It continues to crawl along the bottom of the 100-day and 200-day moving averages, and occasional attempts to break above resistance lines have been thwarted by sell-offs at higher points.

The indicators offer no answers either. With the Relative Strength Index unable to escape the bearish zone, there is clear fear among investors about entering at the current price level. While momentum has not collapsed sharply, it is fragile enough to keep the market in a thoroughly defensive stance. If this tedious stagnation continues much longer, indiscriminate sell-offs due to disappointment are inevitable.

Now, only the $1.30 support level remains. If even this level breaks, stop-loss orders will trigger like dominoes, and sell-off pressure will become uncontrollably large. Recovery is impossible unless Bitcoin (BTC) stabilizes and definitively breaks through the dense resistance zone between $1.40 and $1.50.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*