7 hour ago
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XRP Trades Below $2 Amid High On-Chain Activity
XRP has been under selling pressure, struggling to break the $2 mark. Technical indicators suggest a bearish trend due to lack of strong upward momentum.
Key Observations
- XRP's price remains below $2, facing resistance during recovery attempts.
- Momentum indicators like 50-, 100-, and 200-day moving averages show hesitation rather than buying pressure.
- The broader crypto market conditions have limited XRP's potential for recovery.
- On-chain data reveals high activity on the XRP Ledger, with daily transactions nearing 900,000, indicating significant network usage despite price stagnation.
- This on-chain activity includes substantial value transfers, sometimes exceeding one billion XRP per day.
- The number of active users is in the hundreds of thousands, suggesting short-term trading activity.
Divergence Between Price and Network Activity
- The gap between bearish price movements and strong on-chain activity raises questions about market valuation.
- The current on-chain strength might indicate early positioning for future adoption or institutional developments.
- Uncertainty remains whether this network activity will translate into near-term market demand.
The divergence between price and network activity places XRP at a crossroads, questioning its future trajectory in the market.