u.today
The network growth for XRP recently increased by 50%, which is usually an indication of rising activity and user adoption. However, there were concerns about the sustainability of this growth after the spike was followed by a steep 30% decline. As more users engage with the network, it may indicate an increase in demand for the asset, which is why network growth is frequently regarded as a good predictor of future price movement.
In the case of XRP, this quick volatility points to a brief spike rather than a sustained trend. After multiple unsuccessful attempts to breach significant resistance levels, XRP looks to be in a consolidation phase based on the price chart. A time of uncertainty is indicated by the asset's price retracing.
The absence of a sustained price rally following the recent spike in network activity supported the notion that the network growth spike was an isolated occurrence rather than an indication of long-term bullish momentum. Such spikes in network expansion that do not correspond with price increases may be a sign of short-term interest in the network or speculative activity, perhaps connected to particular XRP ecosystem events or developments.
The network clearly requires continued expansion and greater utility for a more substantial and long-lasting price impact. Key support levels for XRP in the near future are located at $0.50 and $0.55. These levels might serve as a starting point for a subsequent attempt to break higher if they hold.
However, XRP might find it difficult to regain its upward momentum in the absence of steady network growth or fresh bullish catalysts. Investor caution is advised by network growth metrics' steep decline, which shows that the recent spike in activity was not part of a more stable, wider trend.