- The insights into the XRP Ledger made for a bullish reading.
- The price action chart was quick to sink these hopes.
Ripple [XRP] was still in a consolidation phase. The price clung to the $0.52 support level, and whale activity did little to push prices higher.
News that a whale withdrew 52 million XRP worth $28.67 million from Bybit did not help sentiment or induce bullish momentum.
In other news, Elon Musk, CEO and Founder of Tesla and SpaceX and owner of X (formerly Twitter) was asked about XRP adoption by financial institutions.
XRP Ledger showed encouraging stats
Source: XRP/USDT on TradingView
The daily XRP price chart was not bullish. The market structure was strongly bearish, and the sharp price drop in early October left behind a large imbalance to the north.
Therefore, though XRP is expected to bounce toward the local highs at $0.62-$0.66 next, there would be significant selling pressure.
In a post on CryptoQuant, Wenry Seoul, Marketing Manager at Catalyze Research, noted that the XRP Ledger had a daily transaction volume comparable to Layer 1 networks.
This is based on the activity between the 15th of September to the 15th of October.
The decentralized exchange activity metrics showed the number of trades dropped by 6.83%, from 6.88 million to 6.41 million. Even so, the DEX volume went up by 17.64% to $4.6 million.
In terms of Automated Market Maker (AMM) Liquidity Provision, there was significant growth.
AMMDeposit’s purpose is to deposit funds into an existing AMM instance, while AMMCreate is used to create a new instance for trading a pair of assets.
The strong rise in AMMDeposit and AMMCreate reflected a rise in liquidity deposits and is a sign of escalating confidence.
Network growth surpasses three-month highs
Read Ripple’s [XRP] Price Prediction 2024-25
The transaction count trended higher from the 7th to the 20th of October but has begun to falter. The rapid network growth is particularly encouraging because it could spur demand.
This could help the token’s bulls defend the key support level at $0.52. However, based on the price action, a sweep of the $0.508 zone might be necessary before a rally toward $0.62.