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XRP has recently experienced a sharp rise in network activity. In a single day, over 4,600 XRP were destroyed, which is twice as much as the average amounts observed earlier this month. Even though this increase in burned tokens may seem remarkable, the market impact as a whole is only moderate.
The price of XRP is presently hovering just below a descending resistance trendline at about $2.08. The 200 EMA has served as a crucial defense level in recent weeks, and the token has found strong support close to it. The asset is still consolidating and has not committed to a new trend direction, as evidenced by the price action's continued restriction between the $1.95 and $2.24 range.
Technically speaking, XRP remains inside a larger descending channel, which has held back price movement since its local peak around $3.40. Although there was a brief breakout below this pattern in early April, buyers intervened to protect the 200 EMA, which led to a swift recovery. Although a brief increase in network usage is the reason for the 100% increase in burned fees, XRP's burn mechanism is purposefully simple.
Gamza KhanzadaevA small portion of XRP is charged for each transaction — not to drastically cut supply but to keep the network efficient and stop spam. Thus, even burning thousands of XRP has no discernible impact on market dynamics. XRP is still in a crucial technical position for the future. A move toward $2.40 and a possible retest of $2.60 could be triggered by a successful breakout above the 100 EMA at $2.24.
If, on the other hand, momentum is not generated at the present levels, there may be a further drop toward $1.95 or even lower, particularly if the mood of the market as a whole deteriorates. To put it briefly, the burn surge is not a game-changer for XRP, even though it is a symbolic indication of activity. In contrast to short-term fee metrics, traders should concentrate more on price structure, volume and macro signals.
Vladislav Sopov
Dan Burgin