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A huge on-chain surge has once again made headlines for XRP: more than one trillion XRP were transferred in a single day, which is one of the highest transaction volumes in recent months. Such a rapid surge might be the result of institutional movements on the market, and it could cause issues on the market.
The given on-chain chart shows that on April, 2 XRP's payment volume rose to an incredible 1.16 billion XRP surpassing the already high average of the previous few weeks. Increased demand or widespread wallet redistribution, which has historically preceded significant price movements both upward and downward, could be the cause of this volume spike.
The price of XRP is having trouble holding onto its bullish momentum in spite of this remarkable on-chain activity. The price chart indicates that XRP is presently trading close to $2.12, and there is increasing downward pressure. The price is essentially trapped in a bearish structure as the asset encounters strong resistance from the descending trendlines that have developed over the previous few months.
Tomiwabold OlajideThere is nevertheless a bright side. A crucial support level is still the 200 EMA (black line), which is presently trading at about $1.95. XRP has historically recovered well from this area, and as transaction volume increases, there may be a resurgence of buying interest at this level.
Gamza KhanzadaevA potential short-term recovery is also suggested by the RSI indicator, which indicates that the asset is getting close to oversold territory. With increasing on-chain utility supporting the story, the bullish scenario could materialize if XRP can maintain above the $2 threshold and consolidate above the 200 EMA.
On the other hand, if $2 is not held, the asset may be vulnerable to more severe corrections. Although the price action of XRP is still erratic, the increase in on-chain volume is a strong bullish divergence that suggests a more significant development may be underway. Investors and traders should pay special attention because momentum could change quickly.
Vladislav Sopov
Dan Burgin