XRP is currently trading near one of the most crucial resistances after moving up from $1.10 to $1.41-$1.44 in August and September, respectively. XRP bulls have taken it up to its highest level for 12 months, but on-chain data is now posing some doubts regarding the strength of the rally.
The daily chart provides more insight into what is going on. For over 12 months, XRP bulls have been able to contain XRP within the $1.00-$1.41 range, with $1.4108 representing its most recent yearly high. The current level sees the XRP price back near this ceiling.
Key Takeaways
- XRP price is testing the $1.4131-$1.42 resistance area after rising by about 28% from $1.10 in August.
- If the breakout above $1.4131 is confirmed, XRP will face $1.50 and $1.60; otherwise, rejection could lead to a fall to $1.38 and $1.35.
- XRP market capitalization increased from $87 billion to $91 billion, supporting the rise in price.
- The number of active addresses increased to 45,000 but fell again to 35,000, indicating that network activity has cooled down amid the highs.
- XRP number of transactions decreased from 2.15 million to 1.85-1.90 million amid the price rise, generating a bearish divergence.
- For confirmation of the breakout, active addresses should return to 40,000-45,000, and transactions should be above 2 million.
Xrp Price Tests $1.41 Resistance
We looked at the XRP chart, and the short-term trend looks stronger than the broader market structure. XRP climbed from about $1.10 to $1.4131 over the past three to four weeks. That works out to a move of roughly 28%, and the rally has produced a clear series of higher highs and higher lows on the 4-hour timeframe.
The EMA 9 is also giving buyers some support. It currently stands at $1.4093, with XRP fluctuating near $1.4122. If the price continues above the stated level, short-term momentum will favor buyers. The critical levels are $1.4131-$1.42.
XRP hit a peak of $1.4131 but couldnโt keep it, falling to $1.3988. That shows sellers are still active around this zone. A 4-hour break above $1.4131 will confirm the breakout above the yearly range for the bulls. The next target is $1.50, followed by $1.60. However, in case of failure, the first level to watch is $1.4093. A breakdown of the EMA 9 could see the price fall to $1.35, with support around $1.30-$1.35.
On-Chain Data Raises Some Questions
The market-cap figures also indicate the recent surge in XRP. XRPโs market cap increased from around $87 billion to $91 billion as the price surged from around $1.38 to $1.44, an increase of about 4.6%.
Network activity doesnโt seem particularly convincing. Active addresses rose from around 25,000 to 45,000 as the price reached $1.44, but then dropped to around 35,000.
Transaction activity is even more interesting. Transactions fell from roughly 2.15 million to about 1.85-1.90 million as the XRP price climbed from around $1.36 to $1.44.
In simple terms, XRP is trading at higher prices, but fewer transactions are taking place on the network. That makes the current rally look more dependent on investors holding XRP than increased network usage. For the move to look healthier, active addresses would need to return toward 40,000-45,000, and transactions would need to push back above 2 million.
What Comes Next for Xrp
The XRP price now has a clear line to watch: $1.4131. A strong 4-hour close above that level could open the door to $1.50 and potentially $1.60. The market-cap data also gives $91 billion an important role, with a move above that level pointing toward the $95 billion area.
If XRP gets rejected again, $1.38 becomes the first major level to watch, followed by $1.35. The technical setup is bullish in the short term, but the on-chain numbers need to improve. XRP can break above $1.41 without them, but stronger transaction activity and more active addresses would give the breakout better confirmation.
