XRP Market Analysis

Despite a 60% decline in the volume of on-chain transactions, XRP has managed to rise in the market, raising questions about its future direction. Recent data shows that transaction volumes have dropped by over half, indicating a significant slowdown in XRP’s network activity.

Normally, such a decline suggests waning investor interest and reduced liquidity, which can lead to price struggles. Contrarily, XRP’s price has moved upwards, implying that fewer on-chain transactions do not automatically signal a bearish outlook. Currently, XRP is hovering near the 100 EMA, a critical resistance level that could influence its market trajectory.

A bullish sign that may trigger a recovery trend would be a successful breakout above $2.50. The next significant resistance level is at $2.70, where previous price action has shown considerable selling pressure. Surpassing this point would push XRP back into bullish territory and indicate a shift in market sentiment.

Conversely, if XRP cannot sustain its upward momentum, it risks dropping back to support levels at $2.10 or possibly $1.80, where buyers might step in. Despite concerning on-chain data, XRP’s price movement reflects underlying strength. The upcoming struggle at the 100 EMA will be crucial in determining whether XRP can maintain its gains or initiate a recovery phase.

The market may regain its bullish momentum if trading volume returns and XRP manages to surpass $2.70. If not, the asset could face greater vulnerability to future declines. Currently, all eyes are on XRP as it tackles key technical challenges amid uncertain fundamentals.