From 3 Billion XRP to 300 Million: Is XRP Losing Steam?

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As a seasoned crypto investor with battle scars from the 2017 bull run and the infamous 2018 bear market, I’ve learned to read between the lines when it comes to XRP‘s current performance. While the breakout from the descending triangle was indeed promising, the waning momentum has me a bit concerned. The price action lately is reminiscent of my old high school crush – full of potential but always leaving me hanging.

Regardless of an initial robust surge, XRP’s price movement lately seems sluggish and static. While there’s a visible bullish trendline breakout on the presented chart, the force behind this is diminishing. The possibility that XRP may be losing momentum is suggested by certain on-chain indicators that also signal a decrease in activity.

The price of XRP nearly reached $2.57 but then changed direction after leaving a descending triangle, which is usually a positive sign for bulls. However, despite this recent rally, the asset seems to be struggling to make progress judging by its recent price movements. At present, potential support can be found around $2.13, and the 50 Exponential Moving Average (EMA) plays a crucial role in preventing further declines.

If the value of XRP doesn’t stay above the current point, it could potentially fall toward the next support level at $1.145. However, if it manages to break through the $2.60 resistance, it might renew optimism among investors. As per on-chain data, the amount of XRP used for transactions has significantly dropped from highs of three billion XRP to less than 300 million recently.

This large decrease indicates a significant reduction in network activity, which often reflects decreasing investor enthusiasm. Similarly, the number of active accounts (unique senders) is also falling and hasn’t reached its peak from early December. The drop in XRP destroyed as fees is another concerning sign. Coinciding with a decrease in transaction volume, this network usage statistic has experienced a significant decrease.

If XRP’s usage statistics don’t pick up soon, the optimistic argument for its price could weaken due to reduced on-chain activity. For investors, this is a pivotal moment in XRP’s history. To avoid a significant downturn, it’s crucial that the price remains above $2.13 as a support level. However, without new buying demand or an increase in on-chain activity, there’s a possibility of a prolonged period of stagnation for XRP, or even another dip in its price.

In simpler terms, the price level of around $2.60 is being closely monitored for a possible surge ahead. However, if the 50 Exponential Moving Average (EMA) isn’t sustained, Ripple (XRP) might drop to approximately $1.45 as a potential support point. For XRP to recover and rise further, it needs both strong technical indicators and increased activity on the blockchain.

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2024-12-18 15:14