Amid a 65.6% drop in transactions on the XRP Ledger and rising costs, the XRP price prediction becomes more uncertain as investors ponder its future viability.
In early 2024, what was once a vibrant trading hub has now seen transaction costs soar by nearly 170%, creating apprehension within the crypto community.
With the XRP Ledger facing such drastic changes, the possibility of XRP hitting even lower price points looms, raising critical questions about its short-term direction.
XRP Ledger Slows Down: High Costs and Less Activity in 2024
Recently, the XRP Ledger, a digital platform for cryptocurrency transactions, has seen less activity and higher costs.
In early 2024, it was a lively marketplace but has since become quieter and more costly to use.
Specifically, the number of transactions has dropped by over 65%, and the cost per transaction has increased by nearly 170%.
#XRP Ledger on-chain transactions declined by 65.6% during Q2 of 2024, with 86.38M transactions recorded versus 251.39M transactions clocked in Q1 of 2023, according to #Ripple’s “Q2 2024 $XRP Markets Report.” pic.twitter.com/AtR4IA4w4n
— UseTheBitcoin
(@usethebitcoin) August 4, 2024
This shift has raised concerns within the cryptocurrency community, leaving many wondering what’s causing these changes.
Ripple, the company behind XRP, explains that the higher fees are due to more network traffic, which helps prevent spam transactions.
However, the exact reasons for the decrease in activity are still not fully understood.
Looking ahead, Ripple is making moves to revitalize the XRP Ledger:
- Plans for Growth: Ripple aims to turn the XRP Ledger into a centre for digital assets tied to real-world value, with Archax set to add hundreds of millions of dollars in assets next year.
- New Products: Ripple is also planning to launch a new type of currency called Ripple USD. This stablecoin, stable because it’s backed by U.S. dollar deposits and government securities, aims to attract more users with its reliability.
- Innovative Offerings: OpenEden’s introduction of U.S. Treasury bill tokens on the XRP Ledger could attract institutional investors, adding credibility and potential growth.
Despite the downturn in transactions and the rise in fees, Ripple’s strategic efforts in introducing new assets and stablecoins suggest promising growth prospects for the XRP Ledger.
However, for long-term success, it’s crucial for Ripple to figure out and fix the issues causing the current decline in transactions.
XRP Price Prediction
XRP is currently trading at $0.55, down 3% over the last 24 hours.
Its 24-hour trading volume is $1.05 billion, and its market capitalization is approximately $30.8 billion, ranking it as the seventh-largest cryptocurrency.
The 4-hour chart indicates XRP is under selling pressure, with the price facing immediate resistance at $0.56.
This resistance is compounded by the 50-day exponential moving average (EMA) at $0.59, which acts as a significant barrier to upward movement.
The Relative Strength Index (RSI) is currently at 35, suggesting oversold conditions that could signal further downward movement. Key support levels are identified at $0.54, $0.52, and $0.51.
The closing of candles below $0.56 suggests a continuation of the selling trend, with potential declines toward the $0.54 support level if the bearish momentum persists.
Both the 50 EMA and RSI favour a selling trend, indicating continued downward pressure. Investors should exercise caution and consider selling below the $0.56 resistance level.
If XRP fails to break above this resistance, it is likely to continue its downward trajectory, testing lower support levels.
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The post XRP Price Slumps as XRP Ledger Faces 65.6% Drop in Transactions – Can XRP Hit $0.01? appeared first on Cryptonews.
