XRP Price Slides 10% Amid Rising On-Chain Activity And Whale Transactions; Key Supports In Focus

The $XRP price has seen significant volatility on Thursday, mirroring the broader market downturn. After a strong performance in July, which saw $XRP outperform even Bitcoin with a gain of over 35%, the token has now dropped nearly 10% in the last 24 hours.

Analysts Bullish On Long-Term Price Targets

Market intelligence platform Santiment, has highlighted the performance of $XRP’s blockchain ecosystem, the $XRP Ledger (XRPL), despite this recent price drop. The platform attributes this success to heightened on-chain activity, major whale transactions, and significant network growth that propelled $XRP’s 35% monthly surge during July.

This comes as Ripple, the payment network associated with $XRP, announced on Thursday a substantial allocation of $10 million towards a tokenized version of US Treasury bills (T-bills) on the $XRP Ledger, contributing to the bullish sentiment surrounding the token.

In light of this latest announcement, analysts remain divided on the short-term and long-term outlook for the $XRP price. However, there is enough bullishness for the token to resume the uptrend it has been on for the past month.

Some, such as crypto analyst “$XRP Captain,” believe the token could eventually reach as high as $482.48 based on the $27 trillion US Treasury bill market that Ripple is aiming to participate in. This would represent a significant 790x increase from current levels.

Similarly, analyst Mikybull has outlined both short and long-term price targets for the $XRP price. In the immediate future, targets range from $2.5 to $3.5, while the long-term outlook suggests figures starting from $25 and potentially soaring higher, based on his analysis.

Mikybull noted in his latest social media post on X (formerly Twitter) that the 2-month $XRP/USD chart is “looking crazily primed to rip upward.”

$XRP Price At Crossroads

Despite these optimistic projections, the $XRP price faces a critical juncture. Key support levels must withstand pressure to facilitate a resumption of the positive momentum witnessed in July.

Currently priced at $0.5739, $XRP’s first major support rests at $0.5650 on the daily chart. A breach of this level could lead to a sharper downturn towards $0.5657 and potentially down to $0.5400, a crucial support level in the near term.

Of particular importance is the $0.5400 level, which aligns with the 200-day exponential moving average (EMA). $XRP traded below this for the past four months before successfully breaking through, leading to the 35% gains recorded in July.

Ultimately, $XRP’s ability to hold above these critical levels will be key in determining the coin’s near-term trajectory, especially as the current downtrend continues at the time of writing.