XRP Its price fell below $0.50 on May 11, down 5% in the 24-hour period. However, increases in network usage indicate that the next phase of recovery may be near.
XRP Price Drops 12% as Altcoin Markets Multiply
XRP had a remarkable start to May, with a 15% increase between May 1 and May 7. However, since then, XRP price movement has altcoin It was subject to intense fluctuations, reflecting market trends.
At the time of writing, XRP price is hanging precariously above the key $0.50 support level. This reflects a 12% decline from the weekly high of $0.57 recorded on Monday.
Recently, the XRP price is down only 7% compared to the broader altcoin markets. This means that it performs worse than the market average. This underperformance may be linked to recent developments regarding Ripple’s ongoing litigation with the SEC.
Earlier this week, the SEC reiterated its proposal for a hefty $2 billion fine against Ripple. This came after the firm appealed to U.S. District Judge Annalisa Torres for the much lighter penalty of $10 million.
This decline in XRP price and weakness in market performance may reflect Ripple’s sensitivity to the outcome of the SEC lawsuit and regulatory uncertainties. Such events are usually cryptocurrency It can affect the prices of its units and warn investors about risks in the market.
XRP Network Transactions Increased by 120,000 This Week
Analysts predict that the SEC’s proposed $2 billion penalty will be approved by the Judge. Negative reactions to this development may have contributed significantly to XRP’s 12% decline, falling below $0.50 on May 11.
XRP Coin recorded a 15% increase in the first week of May, exceeding the market average. The good news is that on-chain data trends show that the underlying bullish catalysts driving XRP price action are still in effect despite the downwinds created by the SEC’s penalty proposal.
One of the key indicators reflecting this situation is Santiment’s Network Transactions chart, which tracks the daily number of all transactions performed on the XRP Ledger blockchain.
The chart shown shows that XRP recorded 224,250 transactions at the beginning of the price decline on May 7. However, network activity has increased since then. According to the latest data, the XRP Ledger network recorded 352,910 unique transactions on May 10, reflecting an increase of 128,660 transactions throughout the week.
This significant increase in daily transactions of the blockchain network is often associated with a rise in the price of the underlying native coin. One of the main reasons behind this increase is the increasing adoption and use of the network. The increasing number of transactions reflects trust and usage of the network. In this case, more users and organizations interact with the network and benefit from the services and features provided by the network.
Such increases in the blockchain network often reflect confidence in the capabilities of the network and can increase demand by attracting more investors and users. This may indirectly have a positive impact on the price of the underlying cryptocurrency. Increases in the number of daily transactions can be considered a positive sign for the growth and maturation of a cryptocurrency’s ecosystem.
Price Projection: Will It Rise to $0.55 Soon?
XRP price is trading at $0.50 at the time of writing. However, the 130,000-trade increase puts the XRP price in the best position for an early rebound towards $0.55 in the coming days.
Looking at the underlying Bollinger band technical indicator, the XRP price recovery prospect is currently facing major resistance at $0.52. If the bulls can scale the 20-day SMA sell wall, a quick recovery above $0.55 could be on the cards as predicted.
Rather, the bears must force XRP to break below $0.45 to take control of the short-term market momentum. However, as the lower bound Bollinger band indicators show, the support buying wall in the $0.49 region could be daunting.
Source : The Crypto Basic