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Given that price performance and on-chain metrics both show an increase in engagement, XRP is exhibiting indications of renewed market activity. The most recent data indicates that traders and investors may be coming back, which would increase demand even though the asset has recently struggled with resistance levels. The increased rate at which XRP burns is one of the main signs of this comeback.
With more than 5,500 XRP destroyed on Feb. 17, the most recent on-chain data indicates a significant increase in XRP burned as fees. An increase in transaction volume and overall blockchain activity is usually indicated by a higher burn rate, which suggests that interest in the asset is growing. Because they signal increased network usage from trading transfers or institutional activity, increases in burn rates have historically frequently preceded price movements.
Technically speaking, XRP continues to hold above significant support levels and is in a major uptrend. Supported by an upward trendline, the price has been holding steady around $2.50. XRP may attempt a breakout toward the $2.70-$2.80 range if buying pressure continues. However, a pullback could occur if the current trend is not maintained, with key support forming around $2.25. Furthermore, moving averages continue to be largely supportive, with the 50-day EMA serving as a dynamic floor for the price of XRP.
Yuri MolchanThere is a chance that stagnation could occur if short-term resistance is broken, but increased bullish momentum could be triggered by falling volume. Although the elevated burn rate and on-chain activity of XRP are encouraging, sustained price growth will be contingent upon the state of the market as a whole and ongoing demand. In the upcoming weeks, technical strength and an additional increase in network usage could drive XRP higher.
Traders should keep an eye out for a possible consolidation phase prior to the next significant move though if momentum wanes. As of right now XRPs surge in network activity may be a precursor to a resurgence in investor confidence paving the way for its next significant price shift.
Dan Burgin
Vladislav Sopov