XRP is showing signs of revival based on market price movements and on-chain metrics. Recent data reveals a sharp rise in transactions, with 678,000 payments processed on February 20. This surge indicates increased network activity, potentially reflecting greater investor adoption or strategic accumulation.

Network Activity on the Rise

XRP’s ecosystem appears to be gaining momentum after a period of stagnation. Historically, price surges have often coincided with rising transaction volumes, suggesting growing interest from market participants. 

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However, past spikes have sometimes led to sharp declines, making it uncertain whether this uptrend will sustain itself. XRP is currently trading between two key levels: an ascending support trendline and the 50-day exponential moving average (EMA). This positioning puts the asset at a pivotal moment. 

Source: CoinMarketCap

A breakout above the 50 EMA could trigger a bullish rally, while failure to hold support may push prices lower. The main resistance level remains near $2.80, where selling pressure has historically been strong. On the downside, solid support holds around $2.60.

Potential for a Breakout

If XRP maintains its momentum and clears its moving averages, a retest of higher resistance zones could follow. The rise in transaction activity and price consolidation near critical moving averages may fuel bullish sentiment. 

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However, if the spike in transactions proves temporary and fails to translate into long-term demand, XRP could struggle to sustain upward movement. 

A decisive move above resistance will confirm whether XRP is truly waking from its dormancy or if this surge is just a brief fluctuation before another consolidation phase. Traders will closely watch price action in the coming days to determine the asset’s next move.