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Price action and an increase in on-chain activity have both contributed to XRP's strong 60% recovery from its recent lows. In a single day on Aug. 2, the network recorded an incredible 1.35 billion XRP in payments, indicating a resurgence of interest and possibly solid fundamentals developing beneath the surface. In terms of the market, the price of XRP has sharply recovered from the local low of $2.75 and is currently trading above $2.97.
XRP picks it up
The 26 EMA, which XRP has frequently relied on during this uptrend, served as a dependable support level and helped with the recovery. Following the parabolic rally in July, the RSI bounced off the midline at 50, indicating a healthy reset. Volume metrics, which show green candles alongside higher trading volume, a traditional sign of accumulation, also clearly show an increase in buying pressure.
From an on-chain standpoint, 1.35 billion XRP transferred in a single day is a solid milestone that suggests upcoming market reversal. It shows not only whale or exchange activity but also a broader demand for transactions. If the network keeps up this pace past a one-day anomaly, it may establish a strong transactional foundation that underpins the asset's long-term value.
Marking XRP's turnaround
Most notably, XRP's transaction volume had been flat for the majority of Q2, so this change represents a significant trend reversal. There are still weaknesses, specifically that in order to restore a complete bullish breakout XRP needs to recover the $3.20-$3.40 range. Furthermore, XRP must follow through on volume and record a second leg of higher highs to validate this rebound.
However, that might become a when, not an if, if the on-chain momentum persists. All things considered, XRP is showing clear signs of a structural recovery. A multidimensional foundation is formed by the price's bounce off the EMAs, the RSI support and the unexpected spike in on-chain volume. If network activity doesn't become quiet again, XRP might be just beginning its next phase of growth.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team