XRP, the cross-border token from Ripple, has emerged as a top performer in the cryptocurrency market, posting a significant daily surge of 16% to 19%. The asset's price climbed to over $1.65, marking its highest level since February 1 and representing a near 50% recovery from its local low of around $1.10 on February 6.
Analysts are pointing to bullish technical formations. CryptoWZRD noted that XRP's charts against both USD and BTC closed bullish over the weekend, suggesting further upside is likely. Another prominent analyst, EGRAG CRYPTO, highlighted that the current two-week candle is shaping into either a Hammer or a Dragonfly Doji, both classic reversal patterns that appear after a severe downtrend. XRP had been in a downtrend since peaking at $2.40 on January 6.
Some, like analyst Cobb, suggest XRP may be starting to decouple from other large-cap cryptocurrencies. In the past day, aside from DOGE's over 20% surge, XRP was the only other double-digit gainer among the top 20 altcoins.
However, the rally is clouded by conflicting on-chain data. Despite the price surge, payment counts on the XRP Ledger have plummeted by nearly 70% from recent highs. This sharp decline in transactional activity suggests reduced cross-border payment flows and weaker settlement demand, which typically exerts downward pressure on price.
This divergence has led market observers to question whether the rally is driven by speculative buying, short covering, and liquidation cascades following an oversold period, rather than a genuine recovery in fundamental utility. For the momentum to be sustainable, analysts argue that XRP's price needs to be accompanied by a stabilization or recovery in on-chain activity. If network usage continues to decline, the price risks stalling below key resistance levels and potentially retesting recent lows.
