Despite a 35% price surge, XRP has not attracted new investors, with existing holders driving the recent price movement.
Points
- XRP surged by 35% but did not attract new investors.
- Existing traders and holders primarily drove the price movement.
- The average number of transactions per ledger and payments increased.
- Technical indicators suggest a potential correction or consolidation.
- Sustained price growth requires attracting new investors and boosting network activity.
XRP has experienced a notable 35% price surge, yet this increase has not been accompanied by a significant influx of new investors. On-chain data indicates that the recent price movement was primarily driven by existing traders and holders, rather than fresh market participants.
Charts show that the number of newly activated accounts remained relatively stable during the price rally. In contrast, the average number of transactions per ledger and the volume of payments between accounts increased, indicating heightened activity among current XRP holders. This behavior suggests that while the existing community is actively trading, the network has not seen broader market acceptance.
Technical indicators, such as the Relative Strength Index （RSI）, show that XRP is approaching overbought conditions, signaling a potential brief correction or consolidation stage. The 50 EMA at $0.4968, the 100 EMA at $0.5184, and the 200 EMA at $0.5249 are significant areas of support and resistance for XRP. Maintaining support above these levels is crucial for the token to stabilize and possibly move toward higher resistance levels around $0.65.
The sustainability of XRP’s price rally is called into question by the lack of new investor inflows. For XRP to maintain its optimistic trajectory, it is essential to attract new investors and boost overall network activity. Without these factors, the current rally might not be sustainable in the long term.