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.
XRP retests $1.87
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 may be on track for a major comeback in price.
As the broad crypto market volatility continues to persist, XRP has continued to plunge, and it has recently retested the $1.87 level despite trading above $2 for the most part of January.
With the asset now retesting previous levels, traders are optimistic that the rising network performance could drive momentum for XRP and stabilize its price movements.
Apart from the positive network activity, other on-chain metrics still appear discouraging as XRP’s trading volume has continued to plunge, and it is currently down by 26%.
Arman Shirinyan
Alex Dovbnya
Caroline Amosun