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Over the past month, there has been a noticeable increase in activity on XRP Ledger, with an average of about 20% more transactions processed per ledger. At a time when market participants are closely monitoring XRP's wider recovery attempts, this growth suggests renewed increase in network usage, which could point to better liquidity conditions and stronger infrastructure utilization.
Leveling field
According to on-chain data, the transaction density per ledger increased gradually between the middle of January and the beginning of February before leveling off at higher levels. More transactions per ledger typically mean that settlement flows are more active, and that the network is used more frequently for payments, transfers and liquidity.
The price performance of XRP, however, paints a contradictory picture. A recent steep sell-off in XRP caused the price to momentarily drop below important technical support on the chart, before buyers intervened to produce a relief bounce.
Even after a short-term recovery, the asset is still trading below major moving averages, indicating that broader bearish pressure is still present. The asset has since stabilized around the $1.45-$1.50 region.
Although network usage is improving, the discrepancy between weaker price action and increasing on-chain activity indicates that speculative sentiment on the spot and derivatives markets is still cautious. Even when short-term traders stay defensive, institutional flows and payment infrastructure activity can increase, particularly following erratic drawdowns.
Long-term network growth
Long-term growth in transactions per ledger may help maintain liquidity conditions and boost trust among major market players, particularly if the institutional adoption of XRP settlement solutions and payment corridors keeps growing. To verify a more robust recovery, the price must still regain significant resistance areas close to descending trend lines and moving averages.
In the meantime, XRP might keep going through a corrective phase, in which traders leaving prior positions will push rebounds. Investors should expect ongoing volatility in the near future, as the price tries to level off and network fundamentals progressively get stronger.
Vladislav Sopov
Dan Burgin