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Amid a trend of easing geopolitical tensions between the United States and Iran, on-chain activity on the XRP (Ripple) Ledger has surged. However, the actual asset price remains stuck below a heavy long-term resistance level, continuing a sluggish sideways movement.
According to investment media FXStreet on May 21 (local time), XRP is currently maintaining a boring sideways phase around the $1.37 mark, below a major resistance line as of Thursday. Although it saw a slight rebound after touching the short-term support level of $1.35 during recent intraday trading, it failed to break through the technical selling pressure above, significantly lagging behind the overall recovery pace of the entire virtual asset market. Market experts diagnosed that despite the easing Middle East risk providing relief to the overall market, XRP's own technical stagnation may continue for some time.
In contrast to the sideways price movement, the internal network activity of the XRP Ledger (XRPL) shows a very sharp upward trend. According to research by Santiment, a virtual asset on-chain data analytics firm, the 'number of active addresses,' which refers to the pure number of wallets that have sent or received assets on the network, has been steadily climbing since Monday, approaching 24,000 as of Thursday. This continuous increase in on-chain activity usually signifies expanded participation by network users and an amplification of speculative buying interest, serving as a positive fundamental strength to restore investor confidence and offset downward pressure in the long term.
Furthermore, institutional investors' capital inflow, though moderate, shows a continuous upward trend, building a defensive line. According to analysis by financial data platform SoSoValue, an additional net inflow of $1.45 million into XRP spot ETFs occurred on Wednesday alone, proving that institutional buying interest is continuous. The cumulative net inflow into XRP spot ETFs has now stabilized at approximately $1.39 billion, and the total net asset value maintains an average of $1.13 billion, making it a key driver for a potential short-term rebound in the future.
However, despite these positive on-chain signals and ETF fund inflows, the technical chart still points to a thoroughly bearish structure. Based on the daily chart, XRP is currently stuck far below all major moving averages and the recently broken upward trendline. The trendline resistance at $1.40 immediately above and the 50-day Exponential Moving Average (EMA) at $1.41, which will be encountered right after, form strong selling walls. The 100-day EMA at $1.48 and the 200-day EMA at $1.70, which determine the long-term trend, are also at distant high points, preventing a reversal to an upward trend.
Technical auxiliary indicators also demand extreme caution from investors. The Relative Strength Index (RSI) is weakly drifting around 43, far from overbought conditions, and the Moving Average Convergence Divergence (MACD) histogram has not escaped the negative territory. This suggests a high possibility of profit-taking sales pouring in from whales whenever a rebound attempt appears. For the bulls (buying forces) to overcome the short-term bearish pressure, they must reclaim at least the $1.41 level on a closing basis. If buying momentum is not sustained and the current support level of $1.35 is breached, there is a constant risk of further decline to the next demand zone at $1.30.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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