XRP’s price has been going down for the last couple of days, showing more than a 30% correction in a short amount of time. 

Traders are now shying away from this asset due to its current condition because most predict the transaction volume of this coin will go down even more. 

However, the CEO of this project has said that there will be a huge influx of new fresh volume which might lead to a price increase in the long run. But, have the statements translated into anything yet?

XRP Ledger’s Current Condition 

XRP CEO, Brad Garlinghouse, has stated that the XRP Ledger will receive a fresh influx of volume of around $33 Billion, which seems to be an effort to push XRP’s price back up again after it went spiraling down.

The statement was published after XRP’s price went down around 31.48% in just three days during the high volatility market that happened before and during the weekend. 

Even though the volatility happened because of macroeconomic and geopolitical factors, some traders are pointing blamed at Ripple for XRP’s current price correction. 

Most are saying that Ripple’s currently low development has made it hard to trust the project’s development because there seems to not be any new news that can support a fresh price surge for the coin. 

Development Activity on XRP / Source: Santiment 

The statement was then supported by data from Santiment, which shows how the development activity in the XRP Ledger has gone down in the last week and is currently stagnating. 

This means that there has not been much development that is happening in the ledger, giving hints that transaction volume is also low. 

XRP Ledger is a ledger that cannot be used to build anything aside from smart contracts for transaction purposes like its escrow smart contracts. 

However, with the launch of its new sidechains, traders are still demanding that new projects can be built on top of it, just like Bitcoin with its layer two blockchains. 

XRP’s Price Analysis 

Since the team cannot fulfill the demand yet, traders are seen shying away from the asset which is why price recovery seems to be currently out of reach.

Looking at the futures market, the open interest of XRP’s futures contract is seen going down as the open interest is currently almost 50% lower than it was last week. 

Aside from the current global condition that is impacting the financial market, XRP’s lack of new developments and partnerships could hinder its possibility of price recovery. 

This is why currently XRP might go into a consolidation phase, as it is usual for a crypto with low volume to display this pattern. 

XRP Daily Chart/ Source: Tradingview

Looking at the daily chart of XRP, it can be seen that XRP is currently heading into a new consolidation phase after the huge correction it faced. 

The current consolidation zone stands at around $0.4398 and $0.5754 which can continue for a long time due to a lot of uncertainty in the market. 

While XRP’s market capitalization is huge, it still moves just like any other altcoins in the market. 

This means that it will still follow Bitcoin’s lead, which is why the consolidation phase might continue until Bitcoin’s new price trend, which is predicted to happen after Bitcoin Halving happens. 

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