XRP Market Dynamics Analysis: Decreased On-chain Activity, Technical Support Facing Challenges
Watch the live stream to catch the bull market!
Although XRP had a strong rebound to $2.57 after breaking the descending triangle, recent price performance shows signs of weakness. The weakening market momentum, decrease in on-chain activity, and technical pressure at key support and resistance levels collectively pose challenges for XRP.
Technical Analysis: Key Levels of Support and Resistance
Support Levels: $2.13 and $1.45
The current XRP price is testing the $2.13 support level, while the 50 EMA has become an important buffer zone. If this level cannot be maintained, the price may further decline towards $1.45.
Resistance Level: $2.60
Breaking through $2.60 will be the key point to restore the bullish trend. Only by surpassing this level can market sentiment significantly improve.
On-chain Indicators Show Network Activity Slowing
Decline in Payment Volume
From a peak of 3 billion XRP to less than 300 million XRP, indicating a significant reduction in network transaction volume, suggesting weakened investor activity.
Decrease in Active Accounts
The number of unique sender accounts has failed to maintain the peak from early December, reflecting a reduction in overall user engagement.
Decrease in Fee Burning
As transaction volume declines, the amount of XRP burned as a metric of network usage has also decreased, further confirming the downward trend in on-chain activity.
Future Outlook: Key Focus Points
Technical Support
Closely monitor the performance of the $2.13 and 50 EMA support levels, which are crucial for price stability in the short term.
Recovery of On-chain Activity
Improvements in network payment volume and active accounts will be core indicators of returning investor interest.
Macroeconomic Market Environment
Changes in Federal Reserve policy and the overall performance of the global crypto market may have external impacts on XRP's short-term price movements.
XRP is currently at a turning point where key technical and fundamental factors intersect. Without strong driving forces, its price may remain sluggish or continue to decline, and investors should remain vigilant and closely monitor market dynamics.
Watch the live stream to catch the bull market!
