The XRP Ledger recorded its strongest on chain activity in months following XRP’s recent price rally.
Although XRP failed to extend the upward momentum that began on Thursday, the rally still triggered a significant surge in overall network usage across the XRP ecosystem.
At the same time, analysts observed signs that some traders may be quietly accumulating long positions even as the asset continues to trade below the important 100 EMA resistance level.
Network Activity Surged Alongside XRP Price Rally
XRP posted an impressive rally on Thursday, largely fueled by developments surrounding the CLARITY Act in the United States. The long awaited legislation recently cleared the Senate Banking Committee, marking a major advancement toward potentially becoming law.
Ripple’s token is considered one of the cryptocurrencies that could benefit the most from the bill because of its lengthy legal battle with the U.S. Securities and Exchange Commission over whether XRP should be classified as a security.
Following the bipartisan 15 to 9 vote in favor of the legislation, XRP reacted strongly in the market. The token surged from $1.42 to $1.55, reaching its highest price level in nearly two months.
According to analysts at Santiment, the sharp price increase also sparked a major rise in XRP Ledger activity. The firm stated that the network experienced its strongest on chain activity since March, with both active wallet addresses and overall network growth climbing to multi month highs.
Despite the surge, XRP quickly faced resistance near $1.55 and retraced back toward its earlier price levels, where it continues to trade.
Santiment noted that the spike in activity may largely reflect fear of missing out among traders reacting to the price breakout. However, the analysts emphasized that rising transaction activity remains an important factor for medium and long term price growth.
Analysts Spot Signs of Quiet Accumulation
Commenting on XRP’s recent price behavior, popular analyst CW said the asset’s position delta value increased noticeably, suggesting that some investors may be quietly building long positions.
According to the analyst, traders continued adding to their holdings even after XRP pulled back from its recent high.
In a separate analysis, CW pointed out that XRP still has not managed to break above the 100 EMA line, which currently represents the first major resistance level for the token.
If XRP successfully clears that barrier, the analyst believes the next major target could be the 200 EMA level near $1.70. XRP has not traded at those levels in more than three months.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
