Ripple (XRP) has stabilized around the $2.40 price mark, drawing renewed attention from traders and analysts alike. Following a turbulent week driven by macroeconomic uncertainty and geopolitical tensions, XRP is showing signs of resilience. Most notably, on-chain data reveals a 12% surge in network transactions since February 6—indicating growing confidence among users despite broader market volatility.
This uptick in activity suggests that market participants may be positioning themselves for a potential breakout. As sentiment begins to stabilize, investors are closely watching key technical levels and on-chain metrics to gauge XRP’s next move.
XRP Finds Support at $2.40 Amid Cooling Market Fears
After a sharp correction last week, Ripple’s price has held firm above the $2.40 support level. This consolidation phase follows a period of intense selling pressure triggered by global macroeconomic concerns, including escalating trade tensions between the U.S. and China.
Earlier fears were amplified when former U.S. President Donald Trump proposed new tariffs on Chinese imports, prompting retaliatory threats from Beijing. These developments sent shockwaves through both traditional and digital asset markets. Tech stocks dipped, and cryptocurrencies like XRP faced downward pressure—even though fundamental news for XRP remained positive.
Notably, the U.S. Securities and Exchange Commission (SEC) recently dropped all remaining charges against Ripple Labs, a long-awaited development that had been priced in by many bullish investors. However, external macro forces temporarily overshadowed this favorable legal resolution.
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Now, with geopolitical tensions easing and markets regaining composure, XRP appears to be entering a recovery phase. The ability to hold above $2.40 suggests strong underlying demand, potentially marking the formation of a short-term bottom.
On-Chain Activity Signals Renewed Investor Confidence
One of the most compelling indicators of XRP’s potential resurgence is the spike in daily network transactions. According to data from CryptoQuant, transaction volume jumped from approximately 1.7 million on February 6 to 1.92 million by February 7—a 12% increase within just 48 hours.
This surge occurred precisely as price stabilization took hold, suggesting that traders are actively using the dip as an accumulation opportunity. High transaction volumes during consolidation phases often reflect increased network utility and trader engagement—not just speculative hype.
Moreover, the rise in activity indicates that the recent price drop was largely influenced by external macro factors rather than any internal weakness in the XRP Ledger or Ripple’s ecosystem. In fact, the network continues to demonstrate robust performance, processing transactions quickly and efficiently with low fees.
Such sustained on-chain momentum strengthens the case for a bullish reversal, especially if volume remains elevated in the coming days.
Technical Outlook: Can XRP Break Above $2.60?
From a technical standpoint, XRP is currently consolidating near $2.42, just above the Volume-Weighted Average Price (VWAP). This range-bound action is typical ahead of major breakouts, particularly after sharp corrections.
Key resistance lies at $2.60**, a level that could act as a springboard toward $3.00 if cleared decisively. Further upside targets include $2.68**—the mid-band of the Keltner Channel—and eventually **$3.18**, the upper boundary of the channel.
Conversely, downside support rests at **$2.18**. A break below $2.40 could signal renewed bearish momentum, but current on-chain strength makes such a scenario less likely unless new macro shocks emerge.
The MACD (Moving Average Convergence Divergence) indicator remains slightly bearish but shows early signs of flattening—hinting at fading selling pressure and a possible trend reversal. If bullish volume picks up in the next few sessions, a move toward $2.60 becomes increasingly probable.
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Frequently Asked Questions (FAQs)
Why did XRP network transactions increase by 12%?
The 12% rise in daily transactions reflects growing confidence among users who are capitalizing on stable prices around $2.40. This activity suggests strategic accumulation rather than panic selling, reinforcing the idea of a potential bottom.
What is the next target for XRP if it breaks out?
If XRP sustains trading above $2.40 and clears resistance at $2.50, the next major target is $2.60. A confirmed breakout could pave the way for a rally toward $3.00, especially if overall market conditions remain supportive.
How did geopolitical tensions affect XRP’s price?
Heightened trade tensions between the U.S. and China triggered risk-off behavior across financial markets, leading to broad-based crypto sell-offs. While XRP was impacted, its fundamentals—including the SEC case resolution—remain intact.
Does strong on-chain activity guarantee a price increase?
Not always—but it increases the probability. High transaction volume during consolidation often precedes upward moves, as it shows real user engagement rather than passive holding.
Is XRP still legally safe to trade after the SEC case?
Yes. The U.S. Securities and Exchange Commission has dropped all remaining claims against Ripple Labs, significantly reducing regulatory uncertainty for XRP in the American market.
What should traders watch for next?
Key levels to monitor include $2.40 (support), $2.50 (breakout confirmation), and $2.60 (immediate resistance). Additionally, sustained transaction volume above 1.9 million per day would further validate bullish sentiment.
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Final Thoughts: A Foundation for Growth
Despite short-term volatility driven by external forces, Ripple (XRP) is demonstrating resilience through strong on-chain fundamentals and sustained user activity. The combination of legal clarity, network efficiency, and rising transaction volume paints an encouraging picture for the near future.
Traders should remain vigilant for confirmation signals—particularly a close above $2.50—as this could trigger accelerated buying pressure. With macro fears subsiding and investor confidence returning, XRP may be poised for its next upward leg.
Whether you're a long-term holder or an active trader, monitoring both price action and on-chain behavior will be crucial in navigating the evolving landscape of digital assets.