XRP has crossed the $2.50 resistance level, climbing above $2.60 fueled by optimism over Ripple’s legal progress and heightened market participation. This rally marks a significant technical breakthrough after sustained accumulation phases.
However, conflicting signals emerge as on-chain metrics show a sharp 50% drop in XRP payment volumes over the past fortnight. This disconnect between price appreciation and declining network utility contradicts historical patterns where sustained bull runs coincided with rising transactional activity.
The diminishing on-chain usage introduces heightened vulnerability to volatility despite technical indicators suggesting potential retests of the $3.00 threshold if momentum persists. Failure to sustain buying pressure could trigger significant pullbacks given the weakened fundamental usage.
Investors face uncertainty driven by opposing technical strength and network weakness. Close monitoring of transactional volumes and resolution of Ripple’s ongoing legal challenges remains critical for determining XRP’s medium-term trajectory amid these mixed signals.