XRP Explodes 316.9% in Payment Volume, Silent Price Signal?

With XRP having its share of the broad crypto market downtrend, its network activity has flashed a bullish signal according to data provided by XRPSCAN.

Over the last 24 hours, XRP has witnessed a significant decline in its spot trading price which has dipped by about 5% during the period. However, it appears that not all XRP’s crucial metric has aligned with the downtrend as it has seen its daily payment volume surge by a massive 316.9% in just 24 hours.

Notably, the third leading cryptocurrency by market capitalization recorded 244 million in payment volume on September 21st. While investors have been heavily executing transactions involving XRP, the metric has skyrocketed to over $1 billion as of September 22, suggesting increasing institutional use.

XRP flashes unclear signal

The broad crypto market is stunned by a sudden flip in investor sentiment, and the prices of leading cryptocurrencies have recorded significant losses over the last day, leaving XRP as no exception.

Quite similar to trading volumes, a surge in XRP payment volume might suggest repositioning of the asset by large and small traders, which could be attributed to the growing adoption of its varying utilities.

Nonetheless, the unexpected rise in XRP’s payment volume has attracted the attention of market watchers, as network explosions like this could be flashing unclear price potentials.

Amid the massive rise in payment volume, XRP’s trading volume has also increased significantly by a massive 214%, while its price has smashed crucial support levels, hitting a bare low of $2.7. Analysts believe that this is a clear sign of heightened investor activity and looming speculative pressure.

In times like this, when the broad crypto market has generally turned red, the increase in XRP’s payment volume might have been spurred by selling pressures, which have seen traders return their XRP holdings back to exchanges. As such, the increasing payment activity might only be flashing a bearish signal.

On the other hand, increases in payments have often been interpreted as a sign of strengthening network utility and adoption, which means that while traders might be heavily selling off their assets, the surge in adoption and strong network utility could outweigh pressures from sellers, posing the altcoin for a near-term recovery.

The recent launch of the first U.S. XRP ETF further demonstrates surging adoption from institutions, contributing to the surging network activity, which might be silently flashing a bullish signal.

Source