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XRP's on-chain activity and price action are showing a sustained recovery, which could be the key signal on the way to new heights for XRP. The transaction count on the network just exceeded the two million mark and the overall network metrics look healthy, suggesting a potential price retrace.
On-chain revival: Key indicator?
XRP Ledger's surge in transactions usually reflected interest and activity on the network. With the growth of engagement and continuing adoption should come the price stability. Historically, spikes in network activity suggest the price recovering and leading to increased liquidity and overall demand. However, it might not be applicable in bearish periods on the market.
This boost in activity comes at a time when XRP was facing decreasing transaction volumes. The renewed network participation suggests that despite previous slowdowns, XRP is still at the top of the crypto chart with a solid use case and backing.
Yuri MolchanPrice performance and resistance levels
At press time, XRP is trading above $2.30, following the touch of local lows near $2.10. The asset is still moving within a descending channel and is far from exiting it, which means that its movement will be dictated for weeks, at least. A potential break above the upper trendline of the aforementioned channel is possible, which will confirm a shift in trend and open up the way to further gains. Unfortunately, though, in case of a failed recovery attempt, we might see XRP at around $2 again.
Godfrey BenjaminMovement averages seen on the chart act as a dynamic resistance level for now, with the 50-EMA moving at around $2.50. In case bulls potentially push XRP above these levels, we might start looking at $3 as a valid target in the midterm.
What’s next?
The surge in transaction volume provides a strong foundation for XRP’s recovery, but sustained buying pressure is required to maintain upward momentum. If XRP can hold its position above $2.30 and continue building momentum, it could challenge the resistance at $2.55 and beyond. However, an unsuccessful attempt to break key resistance levels could result in another pullback.
Dan Burgin
Vladislav Sopov