In a single day, about 844 million XRP were transferred between accounts. Such a large volume of payments does not occur in a vacuum, particularly not when the price is close to local lows. At a time when market sentiment regarding XRP has been severely damaged, on-chain activity is increasing. This contrast is where things get interesting.
XRP’s lack of strengh
In terms of price, XRP remains objectively weak. The price is trading inside a declining channel and below important moving averages on the daily chart, which is still locked in a downward trend. Recovering higher levels has been repeatedly unsuccessful, and momentum has not yet turned bullish. RSI is in the lower range, indicating fatigue as opposed to strength. In technical terms, XRP is still under pressure.
XRP/USDT Chart by TradingViewOn-chain data, however, presents a different picture. An increase in payment volume to over 844 million XRP indicates capital movement and increased network usage rather than passive holding. In the past, long-term increases in transaction volume have typically preceded structural price changes rather than occurring right away.
XRP still needs to demonstrate its value in the near future. Although a bounce is conceivable, it is unlikely to be particularly strong unless the market as a whole becomes supportive. Stabilization, tighter ranges, slower downside and efforts to establish a base is the most likely near-term result. The argument for a relief move will be strengthened if transaction volume stays high and the price stays in its current range.
Long-term growth in on-chain payments may serve as the foundation for a recovery. Pricing does not immediately follow usage; it does so over time. The risk profile of XRP will significantly alter if these volume spikes become a pattern rather than an isolated incident.
Source: https://u.today/844000000-million-xrp-in-24-hours-enormous-surge-brings-hope
