[Digital Today intern reporter Seung-a Yoo (유승아)] XRP Ledger payment volume fell more than 72 percent in a day.

On Oct. 18, local time, blockchain outlet U.Today reported that payment volume, which indicates XRP transfers between accounts, totaled 119.5 million XRP on Oct. 17. That was down 72.3 percent in a day.

The figure is well below the 30-day average of 629.3 million XRP. Recent payment volume is very low given the record high reached 7 billion XRP.

Payment volume on Oct. 18 has so far totaled about 37.5 million XRP. That is an additional 68.6 percent drop from the previous day. The final total could be higher because the tally is not yet complete. Over the past year, daily payment volume generally held at 300 million to 1 billion XRP, and it rose as high as 2.5 billion XRP in November and February. Figures around 100 million XRP are rare.

It is hard to conclude the decline in payment volume definitively signals a trend of weakness. XRPL payment volume swings widely day to day, and activity can fall on weekends. This decline also occurred on Friday and Saturday. Still, because XRP prices are also under downward pressure, the slowdown in on-chain activity bears watching.

XRP has fallen from its September peak near $1.66 and is trading around $1.30. The price has dropped below the 50-, 100- and 200-day moving averages located at $1.34 to $1.38. Those moving averages are now acting as resistance levels.

The relative strength index (RSI) is near 40, and analysis suggests upside momentum is weak but the market has not entered oversold territory. Trading volume, which surged in August, has declined since then. Both price and volume show weaker momentum for a rebound.

Key support is in the $1.25 to $1.27 range. It is the area where buying interest emerged in mid-September and this week. If the closing price falls below this range, $1.15 is mentioned as the next support, and after that the August low of $1.00 could come into focus. To regain an uptrend, the price must first move back above $1.34 to $1.38. If it fails to break through, a rebound may be hard to sustain.

If payment volume recovers to around 500 million XRP over the next few days, this decline could prove temporary. If volume stays low and XRP fails to climb above the moving averages, the risk of breaking the $1.25 support level could increase.