On Feb. 25, 2025 XRP experienced a tremendous spike in network activity, with 2,054,526 transactions completed. It is unclear what is causing this surge in on-chain activity, but a likely reason is transition of funds. XRP is trying to level off after a period of decline, and it is currently trading at about $2.23.
Although the asset recently fell below a significant trend line, it is currently exhibiting indications of a possible recovery. Stronger price action may be anticipated as a result of the increased transaction activity, which indicates increased network engagement. XRP is still above critical support at $2.00 despite the recent correction.
A test of lower support at $1.79 could occur if current levels are not maintained, but a push above $2.50 would indicate a return to bullish momentum. Increased network usage may be the result of significant settlements or transactions within the XRP Ledger. It is possible that new alliances or technological advancements have raised the volume of transactions. On-chain activity might be fueled by traders transferring money in anticipation of price changes.
Price is not directly impacted by transaction count alone, but it frequently signals increasing adoption or significant changes in market sentiment. A rally toward $2.75-$3.00 could occur if XRP keeps up its current momentum and breaks above $2.50. If the surge in transactions does not result in buying pressure, XRP might find it difficult to maintain above $2.00, which could cause it to fall as low as $1.79.
Traders should closely monitor whether XRP’s on-chain activity translates into a stronger price trend, as it has reached record levels. To ascertain whether this spike represents a sea change for XRP or merely transient volatility, the next few days will be critical.
