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Even though the number of transactions on its network has significantly decreased, XRP's price has increased by a noteworthy 5%. Questions concerning the network's present activity levels and possible future price movements are raised by the fact that executed transactions have decreased from 11.6 million to roughly 600,000. XRP has recovered from its recent lows and is now trading at about $2.145.
The market may be in a consolidation phase as a result of the price increase and decline in network transactions. Reduced network activity is usually indicated by lower transaction counts, but in this instance, it might also indicate that holders are being patient rather than actively selling. A similar declining trend in the quantity of successful transactions indicates a slowdown in network participation.
On the other hand, the absence of strong selling pressure suggests that investors are not hurrying to sell their holdings. This lends credence to the theory that XRP might still be able to recover further.
The Bullish case: The next resistance levels to keep an eye on are approximately $2.62 and $2.80 if XRP sticks above important moving averages and keeps up its momentum. If these levels are broken, XRP may move closer to the psychological $3.00 barrier.
XRP may retest lower support levels at $2.20 and $2.00 if selling pressure intensifies and the asset is unable to hold above $2.40. Another sign of waning investor interest could be a further drop in network transactions. The recent 5% price increase for XRP paints a contradictory picture.
The price is somewhat stabilizing at around current values, and things could certainly retrace toward positive values, but the lack of on-chain support and trading volume on the market suggest there will be no recovery in the foreseeable future.
Vladislav Sopov
Godfrey Benjamin
Dan Burgin