$1.35 Support Tested As Network Activity Jumps 40%

• XRP trades near $1.37 after network activity climbed 40% in recent weeks, hitting 2.5 million daily transactions despite skepticism over wallet concentration.
• Arizona lawmakers advance XRP digital reserve bill in 4-2 committee vote, naming XRP alongside Bitcoin and DigiByte for state treasury holdings.
• Open interest rises 0.75% to $2.28 billion while long/short ratios favor bulls at 2.38, but price remains trapped below all major EMAs.

XRP price today trades near $1.37, up 2.14% after bouncing from multi-month lows as network activity surges and legislative developments provide fundamental support. The move places buyers in a defensive position as technical resistance from descending EMAs caps recovery attempts.

Network Transactions Spike 40% But Wallet Concentration Raises Questions

XRP Ledger activity climbed roughly 40% in recent weeks, reaching 2.5 million daily successful transactions on February 19 and 20. The network processes cross-border payments, token transfers, and decentralized finance applications, metrics that typically signal expanding utility beyond price speculation.

However, blockchain data suggests a notable share of transactions may originate from a small number of wallets. One widely circulated screenshot highlighted repeated, small XRP transfers executed in rapid succession from the same address, indicating automated activity rather than broad retail participation.

Arizona Advances XRP Strategic Reserve Legislation

Arizona lawmakers advanced a bill on February 20 to establish a Digital Assets Strategic Reserve Fund, with XRP named alongside Bitcoin and DigiByte as eligible holdings. The proposal cleared a state legislative committee in a 4-2 vote, adding a policy narrative layer to XRP’s fundamental case.

Under the draft framework, the reserve could include digital assets forfeited or surrendered to the state, along with funds allocated by lawmakers. The state Treasurer would have authority to manage and invest these assets within a fiscal year. The bill also allows lending digital assets held in the reserve to generate returns, provided such activity does not increase financial risk.

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The legislation operates separately from Arizona’s General Fund, insulating it from core state budgeting. When state-level legislative momentum builds around specific digital assets, it typically provides long-term fundamental support even if short-term price action remains volatile.

EMAs Stack Bearish As Price Attempts Recovery

The daily chart shows XRP trading below all four major moving averages. The 20-day EMA at $1.45, the 50-day EMA at $1.63, the 100-day EMA at $1.84, and the 200-day EMA at $2.07 form a stacked resistance ceiling that buyers must reclaim to shift momentum.

XRP is attempting to hold the $1.36 to $1.38 demand zone, a level that has acted as support during previous corrections. The 30-minute chart shows the VWAP at $1.37 and Parabolic SAR at $1.35 providing support, while the Ichimoku Cloud near $1.38 acts as immediate resistance.

Key levels now:

• Immediate support: $1.35 (Parabolic SAR)
• Critical floor: $1.32 to $1.30
• First resistance: $1.45 (20-day EMA)
• Major resistance cluster: $1.63 to $1.84

The RSI sits at 38 on the daily chart, showing the token remains in bearish territory but not yet oversold. A move above 50 would signal momentum is shifting, but until XRP reclaims the 20-day EMA, every bounce remains reactionary.

Outlook: Will XRP Go Up?

The next move depends on whether XRP can hold $1.35 and convert the $1.45 level from resistance into support.

• Bullish case: XRP defends $1.35 and closes above $1.45 with rising volume. That reclaims the 20-day EMA and signals the first step toward reversing the multi-month correction.
• Bearish case: A daily close below $1.32 exposes the $1.20 to $1.10 demand zone. Losing that level opens the door to sub-dollar prices.

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