- Placement on market
- Bearish scenario
Recently, XRP has experienced an atypical spike in on-chain activity, with the volume of payments between accounts rising by more than 500% in comparison to daily average flows. A record-breaking 844 million tokens were paid on the XRP Ledger on Aug. 18. Increases in settlement volume like these could be a signal for an upcoming surge.
Placement on market
Technically speaking, XRP is testing a crucial support area at $2.90 after retracing from regional highs at $3.50. The price action is currently hovering just above the July ascending trendline, which is still in place. Indicators of momentum, however, point to a mixed picture. Daily trading volumes on exchanges are still low when compared to early August levels, and the RSI has been declining.
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One of the main unknowns for the short-term price direction is reflected here, between exchange-based volume and on-chain settlement activity. Increased settlement and utility flows could promote accumulation and aid in defending the existing support zone if they continue.
Bearish scenario
If XRP were to bounce back above $3.05, it would be in a stronger position and might be able to retest the $3.40-$3.60 range. On the downside, a break below the rising trendline would erode the structure and increase the likelihood of a decline toward the $2.70-$2.75 region, which is where the 100-day moving average is at the moment. If overall market sentiment continues to decline, network activity might not be sufficient to counteract technical pressure.
Because they frequently come before liquidity inflows on exchanges, investors should keep an eye on whether high on-chain settlement volumes continue for the foreseeable future.
Source: https://u.today/500-xrp-spike-spotted-on-chain-details
