With on-chain metrics and price action aligning for the first time in weeks, XRP is beginning to show signs of life once more. The network handled more than 1.6 million XRP transactions in the last day, which is a noticeable increase in activity when compared to the slow volume that characterized the majority of June.
This increase in on-chain usage may be the first indication of a change in attitude, particularly as traders search for catalysts other than Bitcoin and Ethereum. XRP is progressively regaining ground against overhead resistance on the price chart. The asset is now consolidating close to $2.19 after rising from the $2.10 zone, which has been a crucial support since April.
The 200 EMA (black) has been surpassed by this move, bringing XRP within close proximity to the 50 and 100 EMAs, which form a tight resistance band at $2.25.
Although the volume has slightly increased, indicating renewed interest, an acceleration is still necessary for a long-lasting breakout. Technical indicators are encouraging but cautious. The RSI has risen above 50, indicating a change in momentum from neutral to slightly bullish. But as of yet, there is no concrete proof that this is more than just a relief rally. In order to maintain moves past significant psychological thresholds, XRP has historically needed a surge in both volume and on-chain activity, and $2.50 is just that.
In order for XRP to reach $2.50, it must first successfully break through the $2.25-$2.30 moving averages and remain above them. The next challenge would be to regain the $2.40 zone, which repeatedly restrained price increases in May. Although it depends on momentum continuing to grow, this scenario is feasible given the recent spike in on-chain activity.
Bottom line: With price action pushing against resistance and network transactions soaring to 1.6 million in a single day, XRP is regaining traction. It will take more than one push to overcome ingrained selling pressure, but a move toward $2.50 is possible if volume keeps increasing and buyers demonstrate conviction. The crucial battleground for the next leg up is the $2.25-$2.30 zone, so pay close attention to it.
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