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Despite a substantial 60% decline in the volume of on-chain transactions, XRP has successfully moved up on the market. The possible future direction of XRP is called into question by this divergence. Transaction volumes have declined by more than half, according to recent data, which indicates that XRP's network activity has drastically slowed.
Such a decline usually indicates descending investor interest and reduced liquidity, which frequently portends more price difficulties. In this instance though, the price of XRP has shifted in the opposite direction, suggesting that a drop in on-chain transactions does not always equate to a bearish outlook. As it lingers close to the 100 EMA, a crucial resistance level that may dictate the course of its future market movement, XRP is currently at a turning point.
A bullish indication that could spark a recovery trend would be the asset's successful break above $2.50. At $2.70, where prior price action indicates significant selling pressure, the next significant barrier is located. A breakout above this mark would reintroduce XRP into bullish territory and validate a change in market sentiment.
Tomiwabold OlajideOn the other hand, if XRP is unable to sustain its present upward trend, it may revert to support at $2.10 or even lower at $1.80 where sellers may be eager to buy. Although the on-chain data is concerning, the price action of XRP indicates underlying strength. The battle at the 100 EMA will be pivotal, either confirming XRP's inability to maintain gains or launching it into a recovery phase.
Dan BurginThe market may resume its bullish momentum if volume returns and XRP breaks above $2.70. If this is not done though, the asset may become more susceptible to future drops. Right now, everyone is watching to see if XRP can overcome significant technical obstacles and defy shaky fundamentals.
Dan Burgin
Vladislav Sopov