After a prolonged period of decline, XRP appears to be exhibiting compelling signs of a potential market reversal, driven by a significant surge in on-chain activity and supportive technical indicators. This shift suggests a rekindling of interest and a possible abatement of selling pressure, pointing towards a new phase for the digital asset.
Surging On-Chain Activity Hints at Revival
Recent on-chain data paints an optimistic picture for XRP, highlighted by a dramatic increase in network activity. On October 17, XRP's payment volume soared by over 100%, surpassing 1.33 billion XRP and marking one of the highest readings for the month. This substantial spike is a crucial metric, often preceding significant market recoveries for XRP, as it signifies expanding liquidity circulation and a renewed engagement among network participants. The resurgence in transaction volume suggests that the ecosystem is becoming more active, potentially laying the groundwork for an upward trend.
Technical Indicators Suggest a Bottom and Potential Uptrend
Accompanying the surge in on-chain volume, XRP's price has shown signs of stabilization around $2.45, following a sharp correction from its earlier October peak of $3.20. This stability, coupled with strong on-chain recovery, indicates that selling pressure may be diminishing. From a technical standpoint, the asset appears to be entering oversold conditions, with a flattening Relative Strength Index (RSI) near 35-37 and a noticeable decline in bearish volume. The narrowing of price candles further supports the idea that the downtrend is pausing, paving the way for accumulation. Should buyers successfully push XRP above the $2.65-$2.70 resistance levels, especially as short positions begin to unwind, it could signal the start of a momentum reversal towards $3.00. Furthermore, the increased volume of on-chain payments points to heightened activity from cross-border and institutional players, who typically become more active during critical market cycle transitions, lending additional weight to the potential for a recovery.
