The cryptocurrency XRP is experiencing a period of intense activity – and it’s not just about the price climbing towards $3. Beneath the surface, a deflationary surge is underway. On July 15 alone, over 4,500 XRP were burned due to network fees – representing a staggering 100% increase in weekly token destruction.
🔹 XRP Network in Overdrive
This spike in XRP burns directly reflects the growing usage of the XRP Ledger. On July 16, the daily transfer volume exceeded 471 million XRP, marking a yearly high. This is a clear sign that the network is running at full speed – whether by traders, institutional participants, or liquidity providers.
🔹 Deflation as a Hidden Force
XRP has a built-in deflationary mechanism – a small amount of XRP is burned with every transaction. This mechanism is now gaining momentum. More burning = lower supply, which can support price growth in the long run. For investors focused on fundamentals, this is a highly bullish signal.
📊 Technical Outlook: Strength with Caution
XRP is currently consolidating around $2.95, above the former resistance at $2.90. The chart shows a strong bullish setup, with the token trading above all three key moving averages:
🔹 200-day EMA: $2.16
🔹 100-day EMA: $2.28
🔹 50-day EMA: $2.30
Trading volume remains high, indicating solid market interest.
However, caution is warranted: the RSI is above 80, signaling an overbought condition. If profit-taking occurs, the price could pull back to the $2.70–$2.80 range.
🔮 What’s Next?
On one hand, we’re seeing a network surge, rising volume, and fee destruction. On the other, indicators suggest a possible short-term correction. So what does this mean?
🔹 Long-term: The XRP network is strong, deflation is accelerating, and adoption is growing.
🔹 Short-term: Be prepared for volatility – the next big move could come at any time.
#xrp , #Ripple , #Altcoin , #CryptoAnalysis , #cryptotrading
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