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The cryptocurrency community is both excited and suspicious of XRP's recent surprise on the market, which was not a price explosion but rather an unprecedented 30% increase in on-chain activity. The market as a whole is still dealing with volatility and post-crash uncertainty, but XRP Ledger is now exhibiting a sharp increase in payments and transaction metrics that do not seem to be related to price movement.
Fakeout commences
In contrast to the previous weekly average, the number of successful transactions has increased to over 1.5 million per day, and the average number of transactions per ledger has abruptly increased to over 100 transactions per ledger, according to on-chain data. A significant increase in network activity is indicated by these metrics, which raises the possibility that either a coordinated fund transfer or extensive settlement testing is taking place behind the scenes.
But this surge is especially unusual because it is not resulting in a long-term increase in price. For a brief moment, XRP tried to rise above $2.60, but it was swiftly driven back down by strong resistance close to the 200 EMA (black line). The asset is still recovering from the devastating crash earlier this week that lost almost 30% of its value in a matter of days, and it is currently trading close to $2.04.
XRP remains enclosed
Technically, XRP is trapped in a tight consolidation range between the $2.70 resistance zone and the $2.20 support level. Despite being elevated, the volume pattern primarily shows speculative trading rather than actual accumulation, indicating that traders are still being cautious.
Either institutional players are repositioning ahead of a significant announcement, or whales are rearranging liquidity internally to create an artificial volume perception, all of which are suggested by the abrupt on-chain surge and stagnant price behavior. It is concerning in both situations that the spike occurred right after one of XRP's worst declines of the year.
Right now, everyone is watching XRPL's metrics. A deeper structural shift may begin if the transaction surge continues while the price stays flat, or it may be an indication that a significant event is developing below the surface.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team