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XRP has seen muted price action over the past 24 hours, registering a marginal dip of 0.74%. Despite this drop, technical indicators suggest that the altcoin may be poised for a notable recovery, potentially paving the way for a significant upswing.
At the time of writing, XRP is flashing a bullish signal on the charts. The altcoin is forming an inverted head and shoulders pattern on its 4-hour timeframe—an indicator often linked to impending rallies. If the pattern plays out, XRP could surge to $2.5, a level last seen on March 24.
Options and Spot Traders Turn Bullish
A sharp rise in trading activity further fuels optimism. According to Coinglass, options volume soared by 256% over the last day, pushing Open Interest to $220,860. This uptick signals increased trader interest and the opening of fresh bullish positions.
In the spot market, investors moved with similar conviction. Over $11 million worth of XRP was scooped up from exchanges and transferred into private wallets—often interpreted as a signal of long-term confidence. If such accumulation continues, a supply squeeze could push prices even higher.
On-Chain Metrics Raise Caution
Despite the technical and trading momentum, XRP’s rally faces headwinds from weakening on-chain activity. Data from XRPScan reveals a steep decline in network usage. Transaction volume fell from 1.56 million to just 660,000, while active sender accounts dropped from 20,700 to 8,500 in 24 hours.
These dips indicate waning user engagement on the XRP Ledger, a potential red flag. If network activity doesn’t rebound soon, it may cap the token’s upside potential, despite the bullish market structure.
While XRP is showing promising signs on the technical front, supported by strong inflows from both options and spot markets, its long-term rally hinges on a recovery in on-chain metrics. For now, the crypto community watches closely as XRP stands at a pivotal juncture.
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.
Also Read: XRP Bulls Eye $12+: Will Ripple Trigger a Massive 1,500% Rally Soon? Analyst
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
