XRP Ledger Sees $44 Million Daily Transactions Amid Increased On-Chain Activity

XRP has seen a notable increase in on-chain activity, leading to heightened interest in the XRP Ledger, Ripple's digital payment platform, due to its enhanced transaction throughput.

CryptoQuant reported a rise in the NVT (Network Value to Transactions) Ratio for XRP, suggesting increased on-chain activity. A higher NVT Ratio indicates that the network is more active than its current market valuation, with observers noting varied signals in the altcoin's value and activity. Despite this surge in network usage, XRP's price faces resistance from critical levels.

Reason for the Increase in NVT Ratio

The NVT Ratio measures network activity value by dividing market capitalization by on-chain transaction volume. On November 2, XRP's NVT Ratio surged to 1,162, primarily due to increased on-chain activity, processing $44 million in daily transactions according to CryptoQuant data.

This implies that the market capitalization has not kept pace with the network's increased activity, indicating higher transaction volumes likely related to remittance or other purposes. Despite rising activity, XRP's price remains unchanged, with market capitalization stable around $51 billion.

XRP: $0.75 Resistance in Focus

Market experts are examining XRP's price movements, with $0.75 identified as a significant resistance level. Analyst Egrag Crypto emphasized this threshold, noting substantial selling pressure at this level observed in November 2023, March 2024, and recently.

Egrag suggests that surpassing $0.75 could lead to targets of $0.85 and $1.12, potentially triggering a rally. However, recent attempts to break this resistance have faced significant selling pressure.

Traders remain hopeful that increased network activity and support levels may provide XRP with necessary momentum despite these challenges.

December Rally Potential

December 2024 may be pivotal for XRP. Analysts believe that if XRP closes above $0.60 weekly, it could set off a "wake-up line," resulting in price gains through year-end.

Featured image from Yahoo Finance, chart from TradingView