XRP price slid below $0.50 on May 11, down 5% within the 24-hour timeframe, but spikes in network usage suggest the next rebound phase could be imminent.
XRP price slides 12% as Altcoin Markets Fold
XRP made a remarkable start to May 2024 that saw it race to a 15% rally between May 1 and May 7. But since then, XRP price action has been subject to intense volatility, mirroring the broader altcoin market trend.
At the time of writing on May 11, the XRP price is hanging precariously above the $0.50 milestone support level. Zooming out, it reflects a 12% decline from the weekly top of $0.57 recorded on Monday.
In comparison, to the broader altcoin markets, which has only declined by 7% during that period, XRP price has performed worse that the market average. This underwhelming performance can be attributed to recent developments surrounding Ripple’s long-running lawsuit with the SEC.
Earlier this week, SEC reaffirmed its recommendation of a hefty $2 billion fine on Ripple, after the firm had appealed to the US District Judge Annalisa Torres for much more lenient $10 million penalty.
XRP Network Transactions Surged 120,000 this Week
Analysts anticipate that the SEC’s $2 billion recommendation will be upheld by the Judge. Likely, investors’ negative reaction to this development has contributed significantly to the 12% dip that saw XPR prices tumble below $0.50 on May 11.
Recall that XRP had initially beaten the market average to a 15% rally in the first week of May. On the bright side, on-chain data trends show that fundamental bullish catalysts that drove XRP price action in early May are still in play despite bearish headwinds generated by the SEC’s $2 billion slammer.
A key indicator of this is Santiment’s Network Transactions chart below, which captures the daily count of all transactions executed on the XRP Ledger blockchain.
The chart below shows that at the onset of the price dip on May 7, XRP recorded 224,250 transactions. But since then, network activity has been on the rise. The latest data shows that the XRP Ledger network recorded 352,910 unique transactions on May 10, reflecting an increase of 128,660 transactions during the week.
Historically, a large surge in a blockchain network’s daily transactions has often been bullish for the underlying native coin price for two major reasons.
A significant increase in daily transactions indicates the growing adoption and usage of the blockchain network. This suggests that more users and entities are actively engaging with the network, utilizing its features and services.
Such increased activity typically reflects confidence in the network’s capabilities and may attract more investors and users, ultimately driving up demand.
XRP Price Forecast: Imminent Rebound to $0.55?
XRP price is exchanging hands for $0.50 a piece at the time of publication on May 11. However, the surge of 130,000 transactions puts the XRP price in a prime position for an early rebound toward $0.55 in the days ahead.
Looking at the basis of the Bollinger band technical indicator, the XRP price recovery prospect now faces major resistance at the $0.52 level. If the bulls can scale that 20-day SMA sell-wall, a prompt rebound above $0.55 could be on the cards as predicted.
On the contrary, the bears must force a downswing below $0.45 to seize control of the XRP short-term market momentum. However, as depicted by the lower-limit Bollinger band indicators, the support buy-wall at the $0.49 territory could prove daunting.
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