- XRP struggles as breakout fails, leaving traders uncertain about direction.
- On-chain activity declines, raising doubts over bullish XRP breakout strength.
- Price battles near $3.10, key zone for bulls and bears.
XRP’s recent price movement has sparked debate among traders after its attempt to break above the descending resistance line failed to hold. The token briefly climbed past the $3.10 mark, but it quickly slipped back below $3.08, raising doubts about the strength of the move. Market watchers noted that this rejection casts uncertainty over whether XRP’s advance was a valid breakout or another bull trap.
The $3.00 to $3.10 range has now become a critical battlefield for bulls and bears. Analysts believe that a daily close above $3.10 could revive momentum and open the way toward $3.40. On the other hand, failure to reclaim this zone could shift focus back to supports near $2.81, where the orange EMA line rests, and $2.50, aligned with the 200-day moving average. With the RSI hovering near neutral, momentum appears balanced, leaving traders waiting for confirmation.
Also Read: Dave Ramsey Slams Crypto as ‘Dumber Than Crap,’ Calls It Pure Gambling
On-chain Activity Highlights Weak Conviction
According to recent on-chain data, activity on the XRP Ledger has declined sharply, adding another layer of uncertainty to the price outlook. Between September 12 and two days later, the number of executed transactions dropped from over 11.7 million to far lower levels. This drop is considered a bearish signal, as healthy rallies are typically supported by increased participation on the network.
The decline in transactions indicates weakened conviction among network participants at a time when XRP needed stronger support. Traders often look for alignment between price action and network activity, and the current divergence has made many cautious about the breakout narrative.
Possible Scenarios Ahead
Market observers now highlight two likely scenarios for XRP. A bullish scenario would require XRP to quickly reclaim the $3.10 level with rising volume and a revival in on-chain activity. This development could pave the way for another attempt at annual highs and a potential move toward $3.40.
The bearish outlook becomes more credible if XRP fails to secure $3.10 again. In that case, bears could regain control, pulling the price back to $2.81 or even lower to $2.50. The next few daily closes will be crucial in determining which path XRP follows.
Conclusion
XRP stands at a turning point, with price levels and network activity offering mixed signals. Traders are closely watching the $3.10 zone and monitoring whether on-chain participation improves before committing to a direction.
Also Read: BlackRock and Nasdaq Spark Speculation at Ripple Swell as XRP Price Rallies
