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A total of 2.6 million transactions have been recorded in the last 30 days, indicating a notable on-chain surge for XRP. There are concerns regarding the possible effects of this abrupt increase in activity in the trajectory of XRP's price. After experiencing a severe rejection at higher levels, XRP is currently trading at about $2.15.
Over the past several months, XRP has demonstrated strong bullish momentum, reaching a recent high of about $3.20 before coming under selling pressure. With its recent price retracement, XRP showed resilience in the face of volatile market conditions by falling to $2.20 before rising above the $2.50 mark.
Alex DovbnyaIt appears that selling pressure is still present at higher levels, though, given the inability to hold above $2.75. The 50-day moving average, which serves as immediate support, is presently at $2.52. The next crucial area to keep an eye on if XRP is unable to hold this level is $2.30, where the 200-day moving average is offering more support.
A decline below this level might lead to a more significant correction in the direction of $1.82, a crucial psychological zone. Conversely, before attempting another push toward the $3.00 resistance zone, XRP must recover $2.75 if bullish momentum picks up steam. An increase in whale movements or institutional involvement could be the cause of the recent 2.6 million on-chain surge, which indicates increased network activity.
Such activity spikes have historically come before notable price movements, though it is still unclear which way they will go. XRP might experience fresh bullish momentum if accumulation is the primary driver of the surge. The asset might find it difficult to hold onto its current levels, though, if it represents distribution by large holders.
Keeping above the $2.52 support level may signal strength and a possible move toward $2.75 and $3.00, so investors should keep a close eye on it. There could be a decline to $2.30 or even $1.82 if selling pressure increases. It is unclear if the increased network activity will result in a sustained rally or additional declines, but XRP is still in the spotlight.
Dan Burgin
Vladislav Sopov