Sharp Drop in Payment Volume May Stall XRP Recovery After 60% Intraday Slump

By COINOTAG | Published: Oct. 13, 2025 | Updated: Oct. 13, 2025

• Payments volume plummets, signaling reduced on‑chain activity and waning liquidity

• Price decline accompanied by a spike in trading volume driven largely by forced liquidations

• Ledger transfers fell from 1.5 billion XRP to 671 million XRP, a drop of more than 50%

XRP payment volume plunged 50%+ during a 60% intraday crash—COINOTAG analyzes ledger data, liquidity impact and recovery scenarios. Get data-led guidance.

What caused XRP payment volume to plummet?

XRP payment volume fell sharply as on‑chain transfers declined by over 50% while a correlated 60% intraday price drop triggered liquidation-driven volume spikes. Reduced address-to-address payments, lower liquidity and a defensive market posture among institutions and retail participants combined to compress transactional throughput.

How did ledger transfers and liquidity affect XRP’s price movement?

XRP Ledger data (Oct. 12) shows total payments dropped from highs above 1.5 billion XRP to ~671 million XRP, a decline exceeding 50%. This fall in utility-driven transfers reduced natural liquidity and order-book depth, amplifying price moves on stress events. Exchange order books saw widened spreads and thinner bid depth, which elevated the impact of large sell orders and forced liquidations.

Payments volume plummets

The decline in payment volume is a concrete, on‑chain signal rather than a mere technical artifact. According to ledger aggregates, daily payments fell from sustained highs — previously exceeding 1.5 billion XRP in early October — to roughly 671 million XRP by Oct. 12. That contraction represents a material deterioration in transactional activity and on‑chain utility.

XRP/USDT Chart by TradingView

Technically, the price action supports this cautious interpretation. XRP breached a long-term symmetrical wedge on the daily chart and briefly retraced to the 200‑day moving average before recovering toward the 50‑ and 100‑day moving averages. The accompanying spike in traded volume at the crash point appears consistent with forced liquidations rather than measured accumulation. In other words, participation contracted at the same time prices fell, increasing vulnerability to further downside.

Expert observation: A COINOTAG market analyst commented, “The most concerning element is not the headline price change but the collapse in utility transfers. When payments dry up, price rallies tend to be short-lived unless participation returns.” This assessment aligns with on‑chain statistics showing a pronounced reduction in peer-to-peer transfers and gateway activity.

XRP’s another shot

Currently, momentum indicators show limited immediate downside pressure; the RSI sits marginally above 41, avoiding extreme oversold readings. However, absent a pickup in transactional volume and liquidity, rebounds may be ephemeral. If on‑chain payments and order-book depth remain subdued, XRP faces the risk of retesting near-term support levels at approximately $2.40 and $2.20.

For a convincing trend reversal, price must close consistently above the $2.90–$3.00 resistance zone — an area that previously acted as support and now serves as a significant supply barrier. Market participants should watch three reliable signals: a sustained rise in ledger payment totals, narrowing bid-ask spreads on major exchanges, and sizable buy-side accumulation not driven by margin covers.

Frequently Asked Questions

Will XRP recover if payment volume remains low?

Recovery is unlikely to be durable while payment volume remains depressed. Price rallies without concurrent increases in on‑chain transfers and liquidity are often short-lived; sustained recovery typically requires renewed usage and deeper bid-side liquidity across exchanges and gateways.

Is XRP a buy after the crash?

If you are asking aloud: buying immediately after the crash carries elevated risk unless you have clear evidence of returning transactional activity. Assess on‑chain payment metrics, exchange liquidity and whether institutional participation resumes before increasing exposure.

Key Takeaways

• On‑chain contraction: Ledger payments fell from >1.5B XRP to ~671M XRP, down more than 50% — a sign of reduced network usage.
• Forced selling dynamics: A 60% intraday price drop coincided with high trade volume, consistent with liquidations rather than organic accumulation.
• Monitor participation: Traders should track payment volume, bid-ask spreads and exchange depth; sustained improvements in these metrics are a prerequisite for a durable recovery.

Conclusion

The recent episode shows that XRP payment volume and liquidity dynamics matter as much as price. On‑chain data demonstrate a clear drop in transactional activity that amplified market stress during a 60% intraday collapse. Investors and traders should prioritize monitoring ledger transfers, exchange depth and institutional activity before treating rallies as genuine strength. For ongoing coverage and data-driven updates, follow COINOTAG’s reports and ledger analyses.