TL;DR:
- Activity on the XRP Ledger is approaching all-time highs in transaction volume.
- The XRP price has lost key supports and is struggling to stay above $1.40.
- The surge in network transfers appears to be linked to massive sell-offs by large holders.
The Ripple ecosystem is experiencing a contradictory situation, marked by a significant gap between XRP Ledger adoption and XRP price. While network activity is skyrocketing to record levels, the asset’s price is struggling to keep from sinking.
Certainly, a high transaction volume is typically a bullish indicator, but in the current context, it reflects the opposite. Consequently, analysts suggest that users are taking advantage of the network’s liquidity—not to accumulate, but to offload their positions in the face of market weakness.
Technical Analysis and Resistance in the Ripple Ecosystem
Technically speaking, XRP is trading below its most important moving averages after breaking the support of its descending channel. The RSI indicator shows oversold conditions; however, the lack of intervention from buyers suggests that bullish momentum has vanished.
Currently, the zone between $1.60 and $1.70 has shifted from a former support into a formidable resistance. Therefore, any short-term recovery attempt risks being merely a “relief rally” before deepening the prevailing downward trend.
The XRP Ledger infrastructure remains efficient in terms of speed and settlement costs, making it operationally attractive. Yet, this technical performance fails to translate into investor confidence, as they watch the asset be dragged down by generalized bearish sentiment.
In summary, high network participation coexists with a steady erosion of confidence in price action. If buyers do not quickly reclaim key technical levels, the combination of selling pressure and fragile supports could lead to much deeper corrections during the upcoming trading sessions.
