U.Today Crypto Digest: Key XRP Metric Hints Recovery, Dogecoin (DOGE) Volume Rockets 197%, Peter Brandt Names Bitcoin (BTC) Price Rebound Target

XRP burn activity spikes, hinting at potential price rebound

XRP remains under pressure price-wise, but on-chain data points to improving underlying momentum.

• XRP burns. XRP burn activity rose by about 1% over the past 24 hours, with roughly 400 XRP burned as transaction fees on Jan. 25.

XRP has continued to trade in the deep red territory, but its network activity suggests that momentum might return to the market in the near term. Amid the broad crypto market slowdown, the leading altcoin has seen a sharp surge in its burn activity, according to data from CryptoQuant. As such, it appears that a notable price resurgence might be underway.

• Bullish sign. The rise in fee burns also suggests growing use of XRP for payment-related activity, a factor that has historically supported price recoveries.

Following the surge in the XRP burn activity, the amount of XRP burned as fees has surged modestly by about 1% over the last day, hitting about 400 XRP on Jan. 25. The surge in the burn metric suggests a reduction in sell-off pressure, as traders are willing to hold their assets to aid in price stability.

While the metric also suggests increased use in XRP for payment purposes, which often helps to drive an increase in the price of the asset, it appears that XRP price may be on track for a major comeback.

Dogecoin volume surges 197% despite ongoing price volatility

Dogecoin is underperforming the broader crypto market, but the massive volume rally signals a potential rebound.

• Volume spike. DOGE recorded a 197% spike in trading volume, even as price action remains volatile.

Dogecoin (DOGE), the king of the meme coins, has surged by 197% in trading volume despite battling price volatility. According to CoinMarketCap data, Dogecoin’s volume hit $1.29 billion in the process as transactions increased on the DOGE market. 

Dogecoin’s overall outlook might be bearish, but the spike in trading volume has the potential to trigger a recovery. Notably, when the meme coin’s volume is reduced, it often amplifies price swings on the market. 

• Volatility. Higher volume can reduce extreme price swings and improve short-term liquidity conditions.

Given that liquidity in the crypto space has dropped lately, Dogecoin is more prone to market sell-offs. Retail traders looking for quick funds might choose to offload DOGE and cut their losses. However, if trading volume continues to soar, it could signal a revival of retail interest in the meme coin.

Peter Brandt sets $93,000 as key level for Bitcoin trend reversal

Legendary trader shares new take on Bitcoin price, flags $93,000 mark as the needed level to negate the current downtrend.

• Bearish view. Peter Brandt says Bitcoin remains bearish after dropping more than 5.2% over the past seven days.

Veteran trader Peter Brandt has dropped a new price rebound target for Bitcoin (BTC) after the coin shed more than 5.2% in the last seven days. Brandt opines that Bitcoin is likely to continue on its bearish momentum unless it can reclaim $93,000 and stabilize above that point.

Notably, Brandt relied on technical charts to argue his point. According to him, Bitcoin is in a "bear channel." This is a downward-sloping price range where lower highs and lower lows keep forming. Brandt maintains that Bitcoin's moves in the bear channel have "been completed."

• Price target. Brandt noted he would reconsider his stance only if BTC stabilizes above $93,000.

This implies that Bitcoin is likely to continue its bearish momentum or pause before it proceeds in further downward slips. The veteran trader is overall bearish on the outlook for Bitcoin.

However, Brandt noted that for Bitcoin to break out of this bearish momentum, bulls need to support the coin to climb to $93,000. He insists that if BTC fails to breach this level, the current outlook might linger for a while.