XRP erased substantial growth and fell nearly 70% from its highs in an important on-chain metric. However, today’s price action is providing a glimmer of hope despite the dire circumstances on-chain, as XRP exhibits indications of a brief recovery. As of press time, XRP is trading at about $2.54, up more than 7% in the past day, making it one of the better-performing major altcoins.
XRP’s lack of volume
A relief rally may be forming, but the bounce comes after a brutal decline that pulled the asset below important support levels. On the other hand, the on-chain image presents a more nuanced picture. According to available data, just 428,982,336 XRP were used in transactions over the last 24 hours. This is a comparatively small amount when compared to historical averages that frequently surpassed a billion XRP per day.
XRP/USDT Chart by TradingViewFor long-term holders who prefer utility-driven growth over short-term volatility, this indicates that while speculative activity is resuming, real-world network usage is still muted. Technically speaking, if buyers are able to break through the $2.60-$2.65 resistance range, XRP’s recent surge may continue. After that, the next significant test is located close to the 200-day moving average at $2.85, which would be a crucial area from which momentum traders would reverse course.
After weeks of intense liquidation volume is beginning to show signs of recovery, the RSI has risen above 43, suggesting that selling pressure may be waning. However, the general perspective is one of caution. The lack of substantial network payment activity highlights the precarious basis of this recovery, and XRP is still firmly in a downward trend.l
Until on-chain engagement and transaction volume begin to rise once more investors should anticipate short-term volatility with little follow-through. To put it briefly, XRP may be making a brief comeback on the charts, but if its utility does not improve significantly from that meager 428 million daily transfer figure, it runs the risk of falling further once the initial excitement wears off.
Source: https://u.today/xrp-plummets-70-only-428982336-in-24-hours
