XRP, Network Activity Surges...Rebound Play from $1.3 Support Line

▲ XRP

XRP Ledger activity has recently surged by 36.4%, re-igniting the possibility of a rebound for XRP's price, which has been stuck in a bearish chart.

According to U.Today, a cryptocurrency specialized media outlet, on May 31 (local time), XRP Ledger's activity volume recently increased by 36.4%. U.Today reported that this increase is one of the largest surges in recent weeks, indicating that the XRP Ledger-based ecosystem remains active despite overall market uncertainty.

The increase in XRP Ledger activity comes as XRP remains in a critical zone on the chart. U.Today explained that while XRP has failed to maintain a strong bullish trend after its explosive rise earlier this year, the increased network utilization demonstrates that user engagement and transaction demand continue to expand internally. It was noted that increased ledger activity, particularly with growing participation from developers, institutions, and payment-related applications, has historically preceded price improvement trends.

Technically, XRP is trapped within a descending triangle structure that has formed over several months. U.Today analyzed that the $1.30 support line is a critical defense that buyers must hold to prevent further declines. Furthermore, XRP is below its 50-day and 100-day moving averages, indicating that these key moving averages continue to act as overhead resistance.

The 200-day moving average also remains in a much higher position, leading to the assessment that XRP has not yet fully escaped the correction trend that began from its previous cycle high of over $2. However, selling pressure appears to be weakening near the support level. The Relative Strength Index (RSI) is at 43, remaining in a neutral zone, and U.Today believes that while XRP is not yet oversold, it could secure room for a rebound if buying pressure returns.

U.Today emphasized that the defense of the $1.30 support line and the continued increase in XRP Ledger activity are key variables for the future. The 36.4% increase in ledger activity is a sign of improvement in the network itself, and if this trend continues, market sentiment could eventually reflect the strengthened fundamentals.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*