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Based on both market price movements and on-chain metrics, XRP is exhibiting indications of renewed activity. There was a significant increase in XRP transactions, according to recent data, with 678,000 payments made Feb. 20. This increase in the volume of transactions suggests that network activity may be on the rise again, which could be a sign of greater investor adoption or strategic placement.
After a time of relative stagnation, the most recent on-chain data indicates that XRP's ecosystem is starting to become more active. In the past, price movements and increasing transaction volumes have frequently coincided because increased network activity may indicate growing market participant interest. However, since prior surges have occasionally been followed by sharp drops in volume, it is still unclear whether this trend can continue.
Based on the price action, XRP is presently trading between two crucial levels: an ascending support trendline and the 50 EMA (exponential moving average). The asset is at a turning point because of this positioning, a break above the 50 EMA could result in a bullish breakout while a failure to maintain support could cause another leg down. The key resistance level to keep an eye on is close to $2.80, where there has been a lot of selling pressure in the past. When it comes to the downside, XRP's solid support is still at about $2.60.
Godfrey BenjaminA retest of higher resistance zones might be on the horizon if XRP maintains its momentum and breaks through its moving averages. XRP is at a turning point due to the rise in on-chain transactions and price consolidation close to important moving averages. Increased transaction activity may feed bullish sentiment and drive up prices. On the other hand, XRP might find it difficult to overcome resistance if the spike in transactions is transient and does not result in long-term demand.
To ascertain whether XRP is truly emerging from its recent dormancy or if this surge is only a brief lull before another period of consolidation will only be confirmed after the asset returns above the key level mentioned above.
Dan Burgin
Vladislav Sopov