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1.5 Billion XRP Drop: What's Happening?
XRP has recently shown contrasting trends across its price chart and on-chain metrics, sparking concerns over its sustainability. While the price has surged significantly, on-chain activity tells a less optimistic story. The sudden breakout visible on the price chart indicates substantial momentum, as XRP has successfully broken past a descending triangle resistance zone. This movement pushed XRP to levels around $2.63, showing a remarkable 5.62% daily gain and signaling a potential bullish rally.
However, the on-chain metrics paint a more concerning picture. The number of payments dropped sharply after Dec. 2, where transactions peaked near two million. Since then, activity has fallen to one million, marking a significant decline. Similarly, the XRP payment volume, once at a robust three billion, saw a dramatic dip, falling below one billion in subsequent days. This suggests declining utility and reduced network participation.
Another crucial metric to consider is the number of active accounts. During the late November rally, active accounts soared above 100,000 but have now tapered off to below 50,000, further confirming diminishing user engagement. This decline in on-chain fundamentals hints that the price spike may not be fully supported by strong adoption or usage growth, which raises questions about its longevity.
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From the technical perspective, XRP remains in a precarious position. The immediate support zone sits near $2.10, which aligns with the 50-day EMA, serving as a cushion if selling pressure increases. On the upside, $2.85 remains the critical resistance to watch for XRP to confirm its bullish breakout.
If on-chain metrics fail to recover alongside price action, XRP’s recent upward momentum may falter, leading to a retracement toward support levels. Investors should monitor network activity and transaction volumes closely for signs of a healthier, sustainable rally. While price movements are encouraging, the lack of fundamental support poses a risk to XRP’s current recovery.
However, the on-chain metrics paint a more concerning picture. The number of payments dropped sharply after Dec. 2, where transactions peaked near two million. Since then, activity has fallen to one million, marking a significant decline. Similarly, the XRP payment volume, once at a robust three billion, saw a dramatic dip, falling below one billion in subsequent days. This suggests declining utility and reduced network participation.
Another crucial metric to consider is the number of active accounts. During the late November rally, active accounts soared above 100,000 but have now tapered off to below 50,000, further confirming diminishing user engagement. This decline in on-chain fundamentals hints that the price spike may not be fully supported by strong adoption or usage growth, which raises questions about its longevity.
card
From the technical perspective, XRP remains in a precarious position. The immediate support zone sits near $2.10, which aligns with the 50-day EMA, serving as a cushion if selling pressure increases. On the upside, $2.85 remains the critical resistance to watch for XRP to confirm its bullish breakout.
If on-chain metrics fail to recover alongside price action, XRP’s recent upward momentum may falter, leading to a retracement toward support levels. Investors should monitor network activity and transaction volumes closely for signs of a healthier, sustainable rally. While price movements are encouraging, the lack of fundamental support poses a risk to XRP’s current recovery.
Жауапкершіліктен бас тарту туралы мәлімдеме: үшінші тараптардың пікірлері бар. Қаржылық кеңес емес. Ішінде жарнамалық контент болуы мүмкін. Шарттар мен талаптарды қараңыз.
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