XRP Ledger Activity Jumps 30%: What It Could Mean for Price Momentum – U.Today

Even though the price of XRP is still trading close to a significant technical support zone, activity on the XRP Ledger is beginning to pick up steam. Both transaction activity and the number of active accounts have increased significantly over the last month, according to new on-chain metrics, indicating a significant rise in network participation.

Transactions flip positive

The data presented indicates that the average number of transactions per ledger recently surpassed 112 transactions, and the number of active accounts increased to 15,400 distinct senders. When taken as a whole, these metrics show that network engagement has increased by about 30% from recent local lows.

This is significant since XRP has been stuck in a broader decline for the majority of the year. With XRP trading below the 50-, 100-, and 200-day moving averages, the daily chart’s price action continues to show a bearish structure. The asset recently returned to the crucial $1.28-$1.30 support area, and lower highs are still forming.

However, on-chain activity frequently begins to improve before the price fully responds. Increasing utility, network interaction, or speculative positioning are usually indicated by rising transaction counts. Stronger ledger activity, in the case of XRP, indicates that despite poor short-term price performance, traders and institutions may be returning to the network.

The rise in active accounts has psychological implications as well. Long-term bear markets typically see a collapse in both price and user activity. If XRP continues to have steady user participation while hovering close to support, it may be a sign that long-term holders are not completely giving up.

Pressure on XRP isn’t easing

However, investors shouldn’t assume that increased network activity will inevitably lead to an instant breakout. Technically speaking, XRP is still under pressure until it can recover the major moving averages in the $1.40-$1.50 range and the resistance zones surrounding the declining trendline. Additionally, momentum indicators are still neutral to bearish, indicating a lack of aggressive buying conviction in the market.

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After a period of price growth, Bitcoin has recently cooled off, and altcoins are still having trouble gaining steady momentum. It may take longer for favorable on-chain signals to result in real price growth under these circumstances.

The market may perceive the activity spike as speculative churn rather than true long-term demand if support fails despite improving network metrics.