XRP Ledger, Ripple's own blockchain platform, has recently processed daily transaction volumes exceeding 1.34 million, showing a 50% surge compared to the previous monthly average. Market analysts are cautiously suggesting that this on-chain indicator increase could be an early signal of an XRP price rebound.
Despite consistent selling pressure, XRP has maintained a stable trend near its multi-month support line. Particularly, the price is concentrated between key trend indicators of 50-day, 100-day, and 200-day exponential moving averages (EMA), preparing for a strong directional movement. The current 200-day EMA support line, which is defending the price level stably, is interpreted as a signal that demand still exists.
The network transaction surge may not be a short-term statistic. Historical cases show that after a noticeable on-chain volume increase, rebounds often follow at major support levels. If this XRP usage increase stems from actual institutional investors or new utility demand, the current stagnation phase could potentially be a significant turning point.
It's also noteworthy that the Relative Strength Index (RSI) remains in a neutral zone, neither overbought nor oversold. This suggests entering a 'compression phase' where a strong breakout in either direction is possible during low volatility, which, combined with recent volume increases, further heightens expectations for a bullish reversal.
However, caution is advised. If XRP fails to definitively break through the current resistance zone of $2.32-$2.40 and the volume increase proves to be short-lived, there's a possibility of transitioning back to a correction phase testing the psychological support line of $2.00.
In conclusion, while XRP has not yet reached a full-scale price rebound, the combination of increased network usage and technical stability suggests conditions that could be precursors to an upward reversal. The trading volume and price movements in the coming days are expected to be crucial turning points.
Real-time news...Go to TokenPost Telegram
<Copyright ⓒ TokenPost, Unauthorized Reproduction and Redistribution Prohibited>
