Significant price swings in XRP over the past few days have attracted a lot of attention from analysts and traders. On-chain data indicates that the volume of payments has soared even though the cryptocurrency has seen a sharp increase in transactions despite remaining in a downward channel.
Despite this activity, key resistance levels remain in the way of a potential bullish reversal. The latest XRP price chart indicates that the asset is attempting to reverse its lengthy downward trend. Currently, it costs roughly $2.30. The downward price channel has shown that XRP has been struggling to break through key resistance levels. A breakout from a strong rally might push the asset to the $2.50-$2.60 range.
Nevertheless, if the resistance is not broken, the bearish trend may continue. Consideration should be given to the 50 EMA level, which XRP has been testing multiple times in recent sessions. A strong push above this level could confirm the bullish trend, but a rejection could force another test of the lower support level, which is around $2.00. One of the biggest shifts in the XRP ecosystem is the rise in on-chain transactions.
An incredible 11.7 million XRP payments were made in a single day. Historically, increased market interest and price growth have been associated with growing network activity, which is indicated by this notable increase in transaction volume. Although the precise reason for this increase is unknown, some theories include increased institutional transactions, whale movements or usage within the XRP Ledger ecosystem.
The persistence of this transactional surge could act as a catalyst for further price growth. Despite the positive on-chain signals, XRP remains at a critical juncture. A bullish trajectory would need to maintain above the 50 EMA and break through significant resistance levels. However, if momentum is lost, more corrections might occur, keeping XRP in its downward trajectory.
For the time being, traders should focus particularly on how XRP responds to resistance levels and whether the volume of transactions is increasing in a sustainable way. Before XRP finally recovers and begins a new bull run, there might need to be a sustained increase in network activity.
