XRP, Quiet Long Buy Signal Detected...Blocked at $1.55 But Network Exploded

▲ XRP/ChatGPT generated image

XRP surged to a two-month high amid expectations of progress on the US cryptocurrency market structure bill, but it was immediately pushed back at the $1.55 resistance level, failing to sustain its upward momentum. However, immediately after the price surge, on-chain activity on the XRP Ledger soared to its highest level since March, shifting market attention to network metrics.

According to Cryptopotato on May 16 (local time), XRP rose from $1.42 to $1.55 after news that the US cryptocurrency market structure bill passed the Senate Banking Committee. The bill advanced with a bipartisan vote of 15-9, and expectations that XRP, which has been embroiled in securities controversy due to its legal battle with the US Securities and Exchange Commission (SEC), could be one of the major beneficiaries, were analyzed as driving the price increase.

The price surge led to increased activity on the XRP Ledger. Santiment stated that network on-chain activity exploded to its highest level since March after XRP's price surpassed $1.54 for the first time in two months. In particular, the XRP Ledger recorded 48,453 active addresses in the last 24 hours, which was presented as the highest level since March 30.

However, the price trend did not lead to a strong breakthrough. XRP was almost immediately rejected near $1.55 and pushed back close to its starting point. While Santiment suggested that this surge in activity could be a typical FOMO response to the price increase, it also explained that increased network transactions are a key factor necessary for mid-to-long-term price growth.

Analyst CW stated that in relation to XRP's price movement, the position delta value actually increased, indicating that someone appears to be quietly buying long positions. He analyzed that some investors increased their positions at lower prices even after XRP declined.

CW noted that XRP has not yet broken through the 100 Exponential Moving Average (EMA), considering this level as the first major obstacle. He explained that if XRP surpasses the 100 EMA, it could attempt further upside to $1.70, where the 200 EMA is located. The period during which XRP has failed to reach the $1.70 level has already well exceeded three months.

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