400 Million XRP: New Recovery Coming

XRP’s on-chain data is showing a substantial recovery, and the price action supports on-chain strength. Looking at the data, there is certainly a sign of a potential recovery. 

After a significant correction from its highs near $3.20, the price of XRP/USDT recently found support around the $2.20 level, according to the trading chart. With the price trying to recover important moving averages like the 50-day MA (blue line), the asset looks to be forming a short-term consolidation pattern. The 200-day moving average (orange line) bounced from $2.20 to a solid support level that might serve as the foundation for a subsequent upward move. 

A previous rally was triggered by a previously broken wedge pattern, and the current price structure suggests that this trend may continue. A retest of $3.00 may be imminent if bulls are able to push XRP above $2.70. On the other hand, if the $2.20 support is broken, XRP may return to the $1.66 level, which corresponds to the 200-day MA. According to on-chain data, the volume of XRP payments significantly increased on Feb. 10; more than 400 million XRP were transferred in a single day.

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This spike points to increased transaction activity, which could be the result of institutional settlements or whale movements. In the past, these spikes have come before significant price changes, which supports the notion that a rally is imminent. XRP traders should keep a careful eye on important resistance and support levels due to the growing network activity and technical indications of stabilization. Failure to hold support could lead to a brief decline, but a break above $2.70 could accelerate momentum toward $3.20.

Setting buy orders around $2.20-$2.30 with a target around $3.00-$3.20 could provide traders wishing to profit from future movements with high risk-to-reward ratios. Moreover, tracking on-chain metrics for additional significant transfers can reveal patterns in institutional distribution or accumulation.

The recent surge in XRP’s payment volume and solid technical underpinnings point to a possible recovery phase. In addition to keeping a cautious sense of optimism for the upcoming bullish wave, traders should continue to watch for breakout confirmations.