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Due to a concerning trend found in data from its on-chain activity, XRP is currently at a pivotal point in both its technical and fundamental development. Six of the eight key performance indicators on XRP Ledger are trending lower, according to an analysis of the metrics, which could indicate a drop in investor activity and market interest generally. On the price chart, XRP is having trouble keeping up its upward trend.
Strong resistance at the 50 and 100 EMAs keeps it within the $2.22-$2.23 range even though it has tried to break above the $2.10 range. Despite the possibility of a breakout, the descending price channel remains a long-term suppressor. The risk of a pullback is still very high unless XRP breaks these levels with volume.
The underlying data backs up this cautious approach. Over the previous 30 days, XRP's on-chain metrics — such as the quantity and number of payments, active accounts total transactions and even fees burned — have all decreased. As declining network activity and user engagement typically precede weaker price action, this is a sign of that. Remarkably, only two metrics exhibit slight upward movement, which may be related to brief increases in payment volume and transaction success rates.
Alex DovbnyaThese are insufficiently important, though, to offset the more general bearish signals. One possible explanation for this decline in network usage is either a lack of significant ecosystem advancements or user migration to other blockchains with more alluring DeFi or NFT ecosystems. XRP is susceptible to wider market corrections due to the absence of robust utility drivers.
XRP may return to the $2 support level or lower if there is even slight selling pressure and there is little on-chain activity. Not only would technological advancements be necessary for a long-term recovery, but usage metrics would also need to improve, which is not yet the case. Even though XRP is still trading within a descending wedge, which frequently hints at a bullish reversal, the absence of on-chain data confirmation casts serious doubt on a long-term upward trend. If network fundamentals do not show discernible improvement, XRP's price might experience further declines before a possible upswing.
Vladislav Sopov
Dan Burgin