XRP Price Holds Steady: 12% Transaction Surge Hints at Rebound?
Ripple (XRP) has shown resilience, holding steady above the $2.40 mark for the past few days. Traders are closely monitoring on-chain metrics for signs of a breakout. Data from CryptoQuant reveals a 12% surge in XRP network transactions since the recent crypto market sell-off eased on February 6th. This increased on-chain activity raises the question: is XRP poised for another upward price movement?
Ripple (XRP) Price Finds Support Above $2.40
Following a volatile week influenced by geopolitical tensions and macroeconomic uncertainties, XRP has found support at $2.40, potentially signaling a bottom. The recent turbulence stemmed from a conflict between DeepSeek and OpenAI, impacting U.S. tech stocks and subsequently spilling over into the crypto market. Further market fears were fueled by former President Donald Trump's tariff announcements, although some were later postponed.
These geopolitical factors overshadowed the positive news of the SEC dropping all remaining charges against Ripple. However, since the market sell-off abated on February 6th, XRP has shown early signs of recovery, consolidating just above $2.40.
Consolidation after a sharp decline often signals a potential bottom, suggesting XRP might be ready for a bullish push.
XRP Network Transactions Surge 12%
Despite last week's macroeconomic uncertainty, on-chain activity indicates a potential XRP rebound. As markets adjusted to the US-China trade developments, XRP holders appear to be positioning themselves for a possible price surge.
CryptoQuant data shows a significant increase in XRP ledger transactions following price stabilization. On February 6th, approximately 1.7 million transactions were recorded. By February 7th, this number rose to 1.92 million—a 12% increase in just 48 hours. This surge in user activity during a consolidation phase often reflects growing investor confidence.
This increased transaction volume suggests traders are accumulating XRP at the current price, indicating that the recent price drop may have been primarily driven by macroeconomic factors rather than issues with XRP's network.
XRP Price Forecast: Potential for $3?
With easing trade tensions, XRP may be on the verge of a rally. The increased on-chain activity and renewed investor confidence support a bullish breakout scenario. If XRP maintains support at $2.40 and transaction volumes continue to rise, the next resistance level at $2.60 could be tested. A decisive close above this level could pave the way for a move towards $3, particularly if broader market conditions remain favorable.
Technically, XRP is consolidating near $2.42, above the VWAP. The Keltner Channel shows resistance at $2.68 and support at $2.18, suggesting a potential breakout. Reclaiming the mid-Keltner range could lead to a retest of the $3.18 upper boundary.
However, downside risks remain if XRP fails to break out of the lower Keltner band. The MACD indicator is showing early signs of a reversal, but continued bearish momentum could push XRP towards $2.18.
Currently, XRP is in a consolidation phase, and a breakout above $2.50 will be crucial to confirm bullish continuation.
Frequently Asked Questions (FAQs)
- Why did XRP network transactions increase by 12%? Traders capitalized on price stability at $2.40, signaling renewed confidence as macroeconomic pressures eased.
- What's the potential price target for XRP? If XRP holds support at $2.40 and transaction volume remains high, a breakout above $2.60 is possible, potentially leading to a move towards $3.00.
- What caused the initial XRP price dip? Heightened trade tensions caused market-wide volatility, leading to XRP's price decline. However, with geopolitical uncertainty easing, XRP is showing signs of recovery.
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Conduct your own thorough research before making any investment decisions. Codeum is not responsible for any personal financial losses.