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As XRP's price gets closer to a pivotal technical moment, the XRP Ledger is displaying indications of a fundamental turnaround. One of the ecosystem's key usage metrics has started to stabilize after months of waning network activity and deteriorating market structure. This could help support the recovery attempt that many investors have been waiting for.
Transactions are yet to stabilize
The average number of transactions processed per ledger has stopped declining and has begun to rise from local lows, according to recent XRP Ledger data. After being under pressure for the majority of the last month, the metric is currently close to 60 transactions per ledger.
Even though the increase might seem small, it signifies a significant change in course following weeks of steady decline. Because transaction-per-ledger activity represents real network usage rather than just speculative trading activity, it is closely watched. Increased activity on the blockchain itself is indicated by rising values, which point to a resurgence of user and application engagement within the XRP ecosystem.
Right now, XRP is trading at about $1.09, pushing straight against declining resistance. A narrowing range that is quickly approaching resolution is created as rising support keeps driving prices higher. Technical indicators are starting to match the improving on-chain picture. After recovering from oversold conditions earlier in the summer, the RSI has stabilized close to the neutral 46 level.
Momentum isn't that great
More significantly, sellers have consistently failed to push XRP below the crucial $1.00-$1.03 support range, indicating that the downward momentum is progressively waning. Overhead resistance continues to be the largest challenge. With the first significant resistance cluster situated between $1.10 and $1.13, XRP is still trading below the 50-, 100-, and 200-day moving averages.
A breakout above that area would probably confirm the triangle breakout and strengthen the case for a larger recovery move. The increase in transaction activity is one of the first significant fundamental changes observed on the XRP Ledger in weeks, even though a single on-chain metric cannot ensure a trend reversal.
XRP may finally be getting close to the point where technicals and fundamentals start moving in the same direction, as network usage stabilizes and the price pushes against resistance.
Dan Burgin
U.Today Editorial Team
