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Based on both technical and fundamental analysis, XRP has entered a crucial breakout phase. A sharp increase in XRP's on-chain activity is one of the most telling indicators. Data shows that on May 7th the amount of XRP paid between accounts increased to over 824 million XRP, which is more than 200% more than the average for the month.
This is not a minor increase; typically spikes of this nature signal aggressive price movement or a change in institutional accumulation. When this is compared to the price chart of XRP, a significant confluence is seen. XRP recently transcended a long-standing descending triangle resistance on the daily time frame that has been stifling price increases since the beginning of Q1.
If XRP maintains its clean breakout above the cluster of exponential moving averages (the 21, 50 and 100 EMAs), which are currently comfortably below the price, it could move toward the psychological $3 barrier. The fact that there is genuine volume supporting this breakout makes it particularly bullish. Along with the RSI, which has risen above 63, there is still space before the market becomes dangerously overbought.
Before encountering resistance close to $2.80-$3.00, there is a fair amount of space for further movement. It is difficult to overlook the unusual increase in payment volume. Either large-scale settlement flows are growing or whales are actively moving XRP in anticipation of future gains. In either case, they both lend credence to the notion that demand and usage will rise which could support higher prices.
The bullish thesis remains valid if XRP keeps up its momentum and trades above the breakout line with consistent volume. Otherwise, a pullback to retest the breakout level around $2.20 would postpone the move but not invalidate the setup. Months of consolidation have finally caused XRP's technical and fundamental metrics to line up. With price confirmation and key metrics exploding, the asset may be ready for its next significant surge.
Vladislav Sopov