XRP’s Recovery Signals Potential New Heights

XRP’s on-chain activity and price action are showing a sustained recovery, which could be the key signal on the way to new heights for XRP. The transaction count on the network just exceeded the two million mark and the overall network metrics look healthy, suggesting a potential price retrace.

On-chain Revival: Key Indicator?

XRP Ledger’s surge in transactions usually reflects interest and activity on the network. With the growth of engagement and continuing adoption should come price stability. Historically, spikes in network activity suggest price recovery, leading to increased liquidity and overall demand. However, this may not apply in bearish market conditions.

The boost in activity arises when XRP was facing decreasing transaction volumes. The renewed network participation indicates that despite previous slowdowns, XRP remains at the top of the crypto chart with a solid use case and backing.

Price Performance and Resistance Levels

At press time, XRP is trading above $2.30, following touches of local lows near $2.10. The asset continues to move within a descending channel, dictating its movement for at least several weeks. A potential break above the upper trendline of this channel could confirm a shift in trend and lead to further gains. Conversely, a failed recovery attempt may see XRP dropping to around $2 again.

Moving averages on the chart currently act as dynamic resistance, with the 50-EMA around $2.50. If bulls push XRP above these levels, $3 could be a valid midterm target.

What’s Next?

The surge in transaction volume provides a strong foundation for XRP’s recovery; however, sustained buying pressure is needed to maintain upward momentum. If XRP can hold above $2.30 and continue building momentum, it could challenge the resistance at $2.55 and beyond. Conversely, an unsuccessful attempt to break key resistance levels might result in another pullback.