XRP Price Dips 10% Amid Rising On-Chain Activity and Whale Transactions; Important Supports in Focus
The XRP price has experienced considerable volatility on Thursday, reflecting the broader market downturn. Despite a strong performance in July, where XRP outperformed even Bitcoin with a gain of over 35%, the token has now dropped almost 10% in the past 24 hours.
Market intelligence platform Santiment has highlighted the performance of XRP’s blockchain ecosystem, the XRP Ledger (XRPL), despite the recent price drop. The platform attributes this success to increased on-chain activity, major whale transactions, and significant network growth that drove XRP’s 35% monthly surge in July.
In addition, Ripple, the payment network associated with XRP, announced on Thursday a substantial allocation of $10 million towards a tokenized version of US Treasury bills (T-bills) on the XRP Ledger. This has contributed to the bullish sentiment surrounding the token.
While analysts have differing opinions on the short-term and long-term outlook for the XRP price, there is enough optimism for the token to continue its upward trend from the past month. Some analysts believe XRP could eventually reach as high as $482.48 based on Ripple’s participation in the $27 trillion US Treasury bill market.
Similarly, other analysts have outlined both short and long-term price targets for XRP. In the immediate future, targets range from $2.5 to $3.5, while the long-term outlook suggests figures starting from $25 and potentially going even higher.
Despite these positive projections, the XRP price is at a critical juncture. Key support levels must sustain pressure to facilitate a continuation of the positive momentum seen in July. The first major support for XRP is at $0.5650 on the daily chart, and a breach of this level could lead to a sharper downturn towards $0.5657 and potentially down to $0.5400, a crucial support level in the near term.
Of particular significance is the $0.5400 level, which coincides with the 200-day exponential moving average (EMA). XRP recently traded below this level for four months before successfully breaking through, resulting in the 35% gains recorded in July.
Ultimately, XRP’s ability to hold above these critical levels will be crucial in determining the coin’s near-term trajectory, especially as the current downward trend continues.