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The XRP Ledger data shows a 60% increase in daily activations, along with a notable increase in new XRP accounts, that has captured market attention this week. More than 5,000 new accounts were created on Oct. 21, the most in weeks, indicating a resurgence of user interest at a time when the larger XRP market has been having trouble stabilizing.
XRP is growing on-chain
Despite the fact that price action is still muted, trading at about $2.38 following several unsuccessful attempts to break through the resistance level of $2.70, this on-chain activity may indicate underlying accumulation or an impending network event. Historically, either as early adoption stages or as speculative build-ups, comparable spikes in user creation have come before significant price movements.
But the on-chain data presents a complex picture. The volume of payments between XRP accounts and the number of successful transactions have been steadily declining since early October, despite the increase in new users. The number of transactions has decreased from almost one million to less than one million per day, and the volume of payments has decreased from more than one billion XRP to about 500 million.
RSI pushing to weak momentum
Although new users are joining the network, this divergence implies that real on-chain utility is still low. The 50-, 100- and 200-day major moving averages are all serving as resistance above the current price levels, and XRP is still in a descending channel, when looking at the market structure. The Relative Strength Index, which is currently at 38, suggests that momentum is weak and that bearish pressure may continue to prevail unless XRP makes a strong break above $2.70.
If this spike in new accounts results in active usage in the near future, especially in terms of increased transaction volume or payment throughput, there will be a new wave of growth on the market. If so, it might be an indication of increased remittance or institutional activity, which could support a recovery. However, if the increase is only speculative, XRP may experience another decline to $2.20 or even lower.
The abrupt surge in new users has temporarily raised cautious optimism, but the market is still in a wait-and-see phase in the absence of a corresponding increase in activity or price.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team