Despite an earlier strong breakout, XRP's price performance has been under pressure lately and appears to be stagnating. Although there is a bullish trendline breakout on the given chart, momentum is waning. Concerns about whether XRP is losing traction are raised by on-chain metrics that also point to a drop in activity.
XRP's price surged toward $2.57 before reversing course after emerging from a descending triangle, a bullish indication. Even though this rally showed promise, the asset appears to be having difficulty gaining ground recently based on price action. Support is currently located around $2.13, and the 50 EMA serves as an important buffer.
Failure to maintain above this level puts XRP at risk of dropping toward the next support level, which is at $1.145. A breakout above the $2.60 resistance, on the other hand, might rekindle optimism. XRP payment volume has drastically decreased from peaks of three billion XRP to less than 300 million, according to on-chain metrics.
This dramatic drop suggests a substantial drop in network activity, which frequently corresponds with waning investor interest. In a similar vein, the quantity of active accounts (unique senders) is likewise on the decline, not maintaining its early December peak. The decrease in XRP burned as fees is another alarming indicator. In line with a decrease in transaction volume, this network usage metric experienced a significant decline.
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Unless usage metrics improve soon, XRP's bullish case deteriorates with less on-chain activity. For investors, XRP is still at a turning point in its history. To prevent a more significant correction, it is essential to maintain above the $2.13 support. However, XRP runs the risk of a protracted consolidation phase or additional retracement in the absence of fresh buying pressure or a surge in on-chain activity.
The $2.60 resistance is still being watched for a potential breakout in the near future. If the 50 EMA is not maintained, on the other hand, XRP may test $1. 45 as support. To regain momentum and move higher, XRP currently needs both technical prowess and increased on-chain activity.
