XRP stayed in the red territory over the weekend, but its network activity is printing positive signals, suggesting that the current price dip might flip soon.
Despite the broad crypto market slowdown, the leading altcoin has seen a sharp surge in its burn activity, according to data from crypto analytics platform CryptoQuant.
With growing network activity coming amid a decline in XRP’s price, it appears that a major price recovery might be underway.
XRP burn rate soars 27%
Although XRP is trading at a low price, the rising network activity is an indication of growing demand, suggesting that investors are willing to buy the asset for cheaper prices ahead of a possible resurgence.
Nonetheless, the data revealed that the amount of XRP burned as fees has reached about 519 XRP as of March 8. This marks a notable surge of about 27.82% in the XRP burn activity over the last 24 hours.
Typically, the metric suggests an increased use in XRP for payment purposes. This activity often helps to drive an increase in the price of the asset, suggesting that XRP may be on track for a major comeback in price.
XRP plunges below $1.40
Despite surging near $1.5 during its recent rally, XRP is back to the red territory and has now plunged below the $1.40 zone, stirring doubts among smaller investors.
While its price has continued to trade negatively since the past few days, XRP has now retreated to $1.35 as of writing time, marking a mild decline of 1.01% over the last day.
Demand from institutional investors has also slowed as XRP ETFs closed last week with a daily outflow of over $16 million.
Nonetheless, the surging network activity suggests that market sentiment may flip positive soon.
Dan Burgin
Vladislav Sopov
