XRP’s Downtrend Won’t End Soon As Transaction Volume Drops

XRP’s downtrend won’t seem to end soon as the transaction volume slowly fades away after months of struggling to get away from the heavy selling pressure. In the latest Ripple XRP news, we can see that the buyers were unable to spark any type of notable rebound from the March lows, so let’s see how the price forecasts seem in the near future.

This weakness caused the altcoin to post major losses against Bitcoin and many of the other peers and there were no technical and fundamental catalysts to help shift this trend. There were no notable additions to Ripple’s xRapid cross-border payment solution as the volume has been stagnant even starting another price slide. This also struck a blow to the head in the mid-term outlooks causing many investors to get away from it as the price targets are quite low.

XRP is trading up just under 2 percent with a price of $0.179 and the cryptocurrency was slowly grinding lower while Bitcoin and the rest of the market range sideways. XRP’s downtrend started at the start of June when the embattled token was trading at $0.21 and the price slowly fell to the support level of $0.18. This support is in the process of being shattered by the sellers while the technical perspective shows that XRP is not showing any signs of forming a long-term bottom.

Luke Martin, a respected crypto analyst asked a question regarding where the cryptocurrency could bottom noting that it has been dropping during the entire 2020. In response, DonAlt, another popular trader offered a price target of 0.00001500 BTC which marks a 25 percent drop from the current price. This was a significant price level that kickstarted the rally in 2017. It appears that XRP’s technical weakness is the result of the drop in fundamental strength. Ripple’s On-demand liquidity product which is seen as a source of utility for the cryptocurrency, was not able to onboard new partners recently.

The transaction volume was also dropping according to the data from the XRP charts. After seeing heightened activity earlier this year, the transaction volume is currently sitting around the same levels that it was for the past couple of years. This suggests that XRP was not quite utilized and could spell trouble for the macro outlook. XRP is now ranked at the fourth position by market cap, down by 0.22% in the past day.