XRP’s earlier bullish breakout has hit a roadblock, with its price performance now appearing stagnant. Despite a breakout from a descending triangle—a traditionally bullish signal—the upward momentum has weakened. On-chain data suggests that network activity is also slowing, raising concerns about the token’s future price trajectory.
Key Price Levels and Technical Analysis
After a promising surge toward $2.57, XRP’s upward drive has faltered. Support currently sits at $2.53, with the 50-day Exponential Moving Average (EMA) acting as a crucial support buffer. If XRP fails to stay above this level, it faces a possible decline toward the next key support at $1.145.
Source: CoinMarketCap
On the flip side, a breakout above the $2.60 resistance could reignite bullish sentiment. This resistance level remains a key focal point for traders eyeing a renewed uptrend. XRP’s on-chain metrics reveal a sharp decline in payment volume, dropping from a high of three billion XRP to under 300 million.
Related article: $4.20 XRP Target Gains Credibility Amid Historic Price Breakout
This significant reduction in activity hints at waning investor interest. In addition, the number of active accounts (unique senders) has decreased, failing to maintain the momentum seen in early December. The volume of XRP burned as fees—a key measure of network usage—has also plummeted, reflecting reduced transaction volume.
Potential Risks and What’s Next for XRP
The decline in on-chain activity could undermine XRP’s bullish case unless usage picks up. Maintaining support at $2.13 remains vital to avoid a steeper correction. Without renewed buying pressure or increased on-chain activity, XRP risks entering a prolonged consolidation phase or experiencing further price retracement.
Related article: Over $272 Million in XRP Shorts Could Face Liquidation at $3
Traders are closely watching the $2.60 resistance as a potential breakout point. If XRP fails to sustain the 50 EMA, a test of the $1.145 support becomes more likely. XRP’s future now hinges on both technical strength and a resurgence in network activity. Investors are monitoring the token’s ability to hold the $2.13 support and reclaim the $2.60 resistance.
With usage metrics declining, XRP’s next move could define its short-term market position. If on-chain activity rebounds, a bullish resurgence could follow. However, without fresh demand or a spike in transaction volume, XRP’s price may face further pressure.
