Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The surge in XRP's on-chain activity may be a sign of an impending bullish breakout. Important on-chain metrics, such as transaction volume, account-to-account payments and new wallet activations, have increased by 500%, according to data from XRP Ledger explorer.
Transactions surpass one million
The surge on the network might get you wondering if the fundamentals are subtly preparing for the next leg up because the price has not caught up despite the on-chain strength. In a single day, the volume of payments on the XRP Ledger exceeded one billion XRP and the number of transactions surpassed one million. This kind of throughput is comparable to levels last observed during significant price increases in 2021.
The rise in newly created accounts, which surpassed 10,000 on Nov. 10 — a level not seen in months — is even more telling. Such an increase in network activity has historically preceded notable market rallies as new demand and liquidity enter the ecosystem. However, XRP's price chart is still hesitant in spite of the on-chain optimism. The token is currently down about 2.5% for the day, trading at about $2.46.
XRP still having trouble
Technicals indicate that XRP is still having trouble below the 200-day moving average, which is located around $2.65. The 50-day EMA, which is located slightly above $2.58, is a strong barrier. A bearish wedge pattern seen on the daily time frame is reinforced by the recent rejection around that area, indicating that traders are still cautious. However, this aggressive on-chain growth cannot be disregarded.
In the past, increases in transaction volume, the creation of new wallets and payment activity have all been indicators of increased speculation and adoption, which frequently result in delayed price reactions rather than quick rallies. XRP may lay the groundwork for a midterm recovery push toward $2.80-$3.00 if it can sustain high on-chain activity while stabilizing above $2.40.
However, price-range-boundness may persist for the time being if the EMA cluster is not broken. In summary, even though the price has not increased yet, the XRP network has. This kind of sustained on-chain surge seldom occurs without a subsequent price movement, which may indicate that XRP is covertly preparing for something much more significant.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team