XRP's recent price has surged significantly, but on-chain data is somewhat concerning.
In the price chart, XRP suddenly broke through the resistance zone of the descending triangle, soaring to around $2.63, with a daily increase of up to 5.62%. It looks quite strong, as if it will continue to rise.
However, the on-chain situation is not so good. After the trading volume surged to nearly 2 million transactions on December 2, the payment quantity has sharply declined. Now the trading volume has fallen below 1 million transactions, a considerable drop. XRP's payment volume has also decreased; it was at 3 billion before, but has now dropped to below 1 billion, indicating that there are significantly fewer users on the network.
Let's talk about XRP and USDT. Another important piece of data is the number of active accounts. In late November, the number of active accounts surged to over 100,000, but now it has slowly dropped back to below 50,000, indicating a decline in user participation.
The poor on-chain data suggests that this price increase for XRP may not be due to more people using it or an increase in transaction volume, raising concerns about whether it can sustain itself.
From a technical perspective, XRP is currently not very stable. If it falls again, the 50-day EMA around $2.10 might hold for a while. However, $2.85 is still a key level for XRP to confirm whether it can continue to rise.
If the on-chain data continues to lag behind the price increase, XRP's momentum may need to pause, and it might even fall back to support levels. Investors should pay close attention to network activity and trading volume to see if there are healthier and more stable signals for price increases. Prices have risen, but if the fundamental data doesn’t keep up, whether XRP can truly turn around this time remains in question.
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