3 Key XRP Ledger On-Chain Metrics Print 50% Recovery Possibility

Cover image via depositphotos.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. XRP's solid backgroundVolume dictates the directionOn the daily chart, XRP has experienced a significant breakdown, losing the crucial $1.32 support level that had kept the market stable for months. Following a severe selloff that drove XRP below all major moving averages and confirmed a strong bearish trend, the asset is currently trading at about $1.15.XRP's solid backgroundThe technical picture appears to be weak at first glance. However, a number of XRP Ledger on-chain indicators point to the possibility that the current decline is coming to an end, which could lead to a 50% recovery rally.XRP/USDT Chart by TradingViewThe activity of XRP payments is one of the most significant signals. Despite the market correction, there are still many payments being processed between accounts. Transaction counts remained above one million per day for the majority of the previous month, despite a recent decline in activity. This suggests that network usage has not fallen in tandem with price, a divergence that frequently occurs close to local market bottoms. HOT Stories Volume dictates the directionThe volume of payments is the second bullish metric. Over the past month, there have been multiple significant spikes in XRP payment volume, including one that surpassed 1.5 billion XRP. Payment volume is still much higher than it was during earlier consolidation periods, even after the correction. Large players may still be using the ledger despite persistent price weakness if transaction value is consistently moving throughout the network. You Might Also Like Active users are the third indicator, and possibly the most crucial. Even though the recent selloff caused a significant decline in the number of active XRP Ledger participants, the metric is still relatively high when compared to historical averages. When active user counts hold steady while prices decline, it usually means that speculation is exiting the market more quickly than real network usage. When selling pressure lessens, that separation may pave the way for a more robust recovery.Technically speaking, before any more significant trend reversal can be verified, XRP would need to regain the previous support area around $1.32. The next significant target is located close to the 200-day moving average at $1.70, which represents a roughly 50% move from current prices if buyers are successful in pushing the asset back above that level.