The XRP digital currency has regained the $2 level after a three-day absence, achieving an increase of nearly 14% in just a few hours. This rapid recovery followed a collective upward wave that swept through the cryptocurrency market, coinciding with a remarkable improvement in Ripple XRP's network indicators and its activity in the financial derivatives market. Click here for advertising services or press data for the crypto project.
A significant jump in futures trading volume
Despite the overall volatility in price movement, several indicators suggest strong performance in derivative trading, which is a sign of investor confidence and rising expectations for upcoming price breakouts.
The technical analyst and trader Martinez revealed a significant increase in the trading volume of XRP futures, recording nearly $21.62 billion across various trading platforms, the highest monthly level so far.
This notable increase reflects the entry of new liquidity into the market and enhances optimism about the return of positive momentum towards the alternative digital currency, despite the market's fluctuations.
Notable growth in Ripple network activity and increased individual adoption
The rise in the trading volume of XRP futures coincided with a remarkable jump in Ripple network activity, indicating an increase in the number of active traders and investors.
Martinez conveyed through a post on Twitter that the number of wallets holding at least one XRP has significantly increased, reaching an all-time high of 6.26 million wallets.
This growth in individual wallets – despite the current selling pressures – is evidence of increasing adoption by retail investors, which enhances the fundamentals of the network in the long term and may represent a positive turning point in the short term.
The continuation of positive interaction is viewed as an additional stimulating factor supporting this market trend in the upcoming phase. However, the confirmation of the upward shift remains contingent upon surpassing resistance areas and containing any future selling pressures.
Read more: The majority of traders on Binance expect the price of Ripple XRP to rise... but reality may be different.
Technical analysis of the price of Ripple XRP
Despite the previous positive data, the technical outlook on the daily chart for Ripple XRP remains negative. With continued selling pressure within a descending channel that began after the price peaked at $3.4000.
The price is currently trading near the $2.0206 level, after previously rebounding from the strong support area at 1.9725 – 1.9470, which coincides with the 50% Fibonacci retracement level of the previous upward wave, reinforcing its significance as a pivotal level.
Forecasts:
As long as the price of XRP is trading below the resistance level of 2.2675 and remains within the descending channel, the outlook remains negative in the short term, with the possibility of re-testing support levels between 1.9800 and 1.5950.
Breaking out of the channel upwards and stabilizing above 2.2675 could restore positive momentum and open the way for a re-test of 2.90 and then the previous peak at $3.40.
Summary: Continued volatility within the descending range keeps the possibility of correction alive, with close monitoring of key support levels to assess opportunities for reversal or continuation in the downward trend.
