- On-chain transactions of XRP are at their highest since the establishment of the token, and it is an indication that its whales and traders are very active.
- This movement is also connected with the token acquisitions by XRP ETFs, which rose over $205 million during the last week.
- An analyst points out that it is important for the token price not to be below the $2 price level to make any steps towards the $2.50 price level.
XRP has had the best on-chain velocity in months. The surge in network activity is an indication of new attention by large holders.
XRP Velocity Captures Rocketing ETF Demand
CryptoQuant indicates that the current XRP velocity has not been observed in a long time. This steep growth means that there is greater liquidity and a large volume of transactions on the XRP Ledger. It hit a high of 0.032 during the review period.
This presents high capital turnover, indicating that capital is moving fast inside the ecosystem. Hence, traders are changing their strategies according to market developments. It follows a trend of new inflows into its spot ETFs.
These products registered more than $50 million in the last day and $205 million in the last seven days. This has driven overall ETF assets to over $906 million.
Data from SoSoValue confirms this trend. The 2GXRP ETF, offered by Grayscale, recorded over $39 million in inflows in one day. Other issuers recorded notable inflows, too.
Also Read | XRP Update: Market Analyst Highlights Major Support Zones at $2 and $1.20
Analysts Identify Major Bullishness
According to a reputed analyst, Dom, the upside-down six-week chart for the token is showing three distinct channels for the price to rise. He points out that the first serious indication of a trend reversal comes in the form of a new higher low on the daily chart.
The analyst recommends that bulls need to ensure that the token price stays above the monthly rVWAP, which is currently at $2.22. According to him, this will help strengthen the token to move towards $2.50.
However, he emphasized that there must be a clean orderbook so that the trend can persist, provided buyers can ensure the price does not drop below $2.22. Should the price drop below $2, analysts caution that the support could collapse. Hence, it could result in the possibility of more selling pressure towards the end of the year.
Source: X
Outlook Determined by XRP Activity
The rise shows that more market participants are now interacting on the XRP Ledger following stagnant flows in recent weeks. Rising circulation of coins tend to enhance liquidity as institutions buy more through ETFs.
The next few days will be decisive as the analysts will be monitoring whether the velocity drops or rises. Continued spikes will redefine immediate sentiment, indicating an increase in interest among top holders. New ETF data and the confirmation from technicals show that XRP traders are looking forward to price gains after this unprecedented jump in on-chain activity.
Also Read | XRP Investors Watch $1.90–$1.64 Range for Potential Buying Opportunity
