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After its spectacular August comeback, XRP has reached a technically delicate point, and the price is currently right around one of the daily chart's strongest support areas. Bulls have little fundamental momentum to work with, as XRP Ledger activity has drastically declined.
Moving averages converge rapidly
Right now, XRP is trading at about $1.35, which is almost precisely where its long-term moving average is located, at about $1.355. A concentrated support zone between $1.33 and $1.36 is effectively created by another shorter-term average that is near $1.34. This area needs to be held.
With a brief surge toward $1.70, XRP's August breakout propelled the asset from roughly $1.00 to above $1.50. But since then, the market has consistently failed to return to the $1.45–$1.50 range, instead forming lower local highs. Additionally, momentum is becoming more and more neutral. The daily RSI has dropped to about 51.7, which is lower than its signal average of about 58.2.
Because XRP is neither oversold nor exhibiting strong bullish momentum, sellers have the opportunity to drive the asset lower in the event that support fails. Network activity adds another concern. Successful transactions decreased by 59.5% to approximately 970,200, while total XRP Ledger transactions fell by 55.6% to 1.2 million.
Transacitons count decreases
Transactions per ledger fell by 56.1%, while payments dropped by 35.6% to 573,100. Indicators pertaining to users convey a similar message. Active accounts fell by 5.4% to 13,900, while active users fell by a much greater 42.3% to 126,200. A total of 2,200 new accounts were created, which was essentially unchanged.
The network itself is still running smoothly: the ledger interval stayed at about 3.84 seconds, and about 20,600 ledgers were closed, up 1.2%. As a result, activity rather than network performance appears to be the main area of weakness. The crucial defensive range for XRP is currently $1.33–$1.35.
A persistent break below it would reveal about $1.28, with the main moving-average cluster around $1.25–$1.28 coming next. A move through $1.45 is necessary for XRP to regain a distinctly bullish short-term structure, but holding support and recovering $1.40 would reduce the immediate downside risk.
Dan Burgin
U.Today Editorial Team
