XRP’s network growth surged by 50%, signaling increased activity and adoption. However, concerns arose when this growth quickly reversed, with a 30% decline. Usually, rising network activity points to more demand for the asset, potentially boosting its price. In XRP’s case, this volatility shows a brief spike rather than a sustained trend. Despite several attempts, XRP failed to break key resistance levels, leading to a consolidation phase. This retracement reflects a period of uncertainty for XRP. The lack of a lasting price rally after the network spike suggests that the growth might have been temporary, not a sign of long-term bullish momentum.
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Short-Term Speculation and Volatility
The rapid network growth without a corresponding price increase points to possible short-term speculation. This activity may have been driven by specific events within the XRP ecosystem. For a lasting price impact, XRP needs continued growth and utility. The key support levels for XRP remain at $0.50 and $0.55, and if they hold, it could prompt another attempt to break higher.
Source: CoinMarketCap
Without steady network expansion or bullish catalysts, regaining upward momentum could be challenging. Investors should approach cautiously as the steep drop in network activity indicates instability. After days of trading in a narrow range, XRP has started a modest rebound.
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On Sunday, XRP edged higher, showing signs of shifting market sentiment. At the time of writing, it was up 2.33% in the last 24 hours, trading at $0.5518. XRP’s trading volume also increased by 85.51%, reaching $1.07 billion. From Sunday’s low of $0.536, it hit $0.556 in today’s session.
XRP Faces Resistance
XRP now faces resistance at the 50-day simple moving average (SMA) of $0.56. Breaking above this level could lead to further gains, but failure could prompt a pullback as traders take profits.
A recent attempt to breach this level on Oct. 17 faced resistance from bears. If XRP breaks through, it could attract more buyers and target $0.6549. However, failing to break the SMA 50 could lead to a range-bound trend or a retracement toward $0.507.
