XRP Price Slides 10% Amid Rising On-Chain Activity And Whale Transactions; Key Supports In Focus

The XRP price has seen significant volatility on Thursday, mirroring the broader market downturn. After a strong performance in July, which saw XRP outperform even Bitcoin with a gain of over 35%, the token has now dropped nearly 10% in the last 24 hours.

Market intelligence platform Santiment, has highlighted the performance of XRP’s blockchain ecosystem, the XRP Ledger (XRPL), despite this recent price drop. The platform attributes this success to heightened on-chain activity, major whale transactions, and significant network growth that propelled XRP’s 35% monthly surge during July. 

This comes as 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, contributing to the bullish sentiment surrounding the token. 

In light of this latest announcement, analysts remain divided on the short-term and long-term outlook for the XRP price. However, there is enough bullishness for the token to resume the uptrend it has been on for the past month. 

Some, such as crypto analyst “XRP Captain,” believe the token could eventually reach as high as $482.48 based on the $27 trillion US Treasury bill market that Ripple is aiming to participate in. This would represent a significant 790x increase from current levels.

Similarly, analyst Mikybull has outlined both short and long-term price targets for the XRP price. In the immediate future, targets range from $2.5 to $3.5, while the long-term outlook suggests figures starting from $25 and potentially soaring higher, based on his analysis. 

Mikybull noted in his latest social media post on X (formerly Twitter) that the 2-month XRP/USD chart is “looking crazily primed to rip upward.” 

Despite these optimistic projections, the XRP price faces a critical juncture. Key support levels must withstand pressure to facilitate a resumption of the positive momentum witnessed in July. 

Currently priced at $0.5739, XRP’s first major support rests at $0.5650 on the daily chart. 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 importance is the $0.5400 level, which aligns with the 200-day exponential moving average (EMA). XRP traded below this for the past four months before successfully breaking through, leading to the 35% gains recorded in July. 

Ultimately, XRP’s ability to hold above these critical levels will be key in determining the coin’s near-term trajectory, especially as the current downtrend continues at the time of writing.

Featured image from DALL-E, chart from TradingView.com