Ripple (XRP) has stabilized at the $2.40 mark over the past two days, showing signs of resilience despite broader market volatility. Traders are closely watching key on-chain indicators for potential breakout signals, as XRP network activity experiences a notable uptick.
XRP Price Consolidates After Market Sell-Off
Following last week’s sharp downturn, XRP has managed to hold its ground above the $2.40 support level. The cryptocurrency market faced turbulence due to macroeconomic uncertainties, including heightened geopolitical tensions and a tech stock sell-off triggered by the DeepSeek-OpenAI dispute.
Adding to the market unease, former U.S. President Donald Trump’s tariff announcement on imports from China, Canada, and Mexico sent shockwaves through global markets. While tariffs on Canada and Mexico were postponed, the U.S. imposed new taxes on Chinese goods, leading to retaliatory measures from Beijing.
Despite these headwinds, XRP’s price decline appears to have been driven more by external factors than by any fundamental weakness in the asset itself. With the U.S. Securities and Exchange Commission (SEC) dropping all remaining charges against Ripple, sentiment around XRP remains largely positive.
XRP Network Transactions Surge 12%, Indicating Renewed Confidence
On-chain data suggests a potential bullish reversal, with XRP ledger transactions surging by 12% since February 6. CryptoQuant data reveals that transactions increased from 1.7 million to 1.92 million within just 48 hours, signaling growing network engagement.
Historically, rising transaction volumes during a price consolidation phase indicate investor accumulation. This suggests that traders are taking advantage of XRP’s stability to position themselves for the next upward move.
XRP Price Forecast: Will Bulls Push Toward $2.60?
From a technical perspective, XRP is trading near $2.42, consolidating above the VWAP indicator. The Keltner Channel suggests a resistance level at $2.68 and support at $2.18, creating a narrowing range that could lead to a breakout.
The MACD indicator, though still bearish, is showing early signs of a reversal as selling pressure diminishes. If XRP can break above $2.50, a rally toward $2.60 and beyond could materialize, with $3.00 being the next major target.
For now, traders are eyeing XRP’s ability to hold support at $2.40, with a breakout above $2.50 likely confirming bullish momentum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
