Ripple’s XRP token has recorded its highest level of payments on the network since the massive bull run of December 2017. If transactions continue to increase at this rate they could reach a new all-time high next month.
The increasing transaction volume is largely driven by an excess in micropayments being completed on the network, although it is uncertain at this time the reason behind it. Analysts have noted that the number of international cross-border payments (the main use-case for Ripple) remain high, indicating fresh interest in Ripple from a different demographic of users.
In December 2017, payments on the Ripple network hit a high of 118,756 on the 29th of the month but have steadily decreased since. A big spike in payments yesterday took the level up to almost 105,000, although that number has reduced significantly today. A similar large spike on the 15th of May suggests that further payment spikes are likely to occur in the coming days.
The Ripple (XRP) price is currently trading at $0.383, up 3.89 percent in the past 24 hours. The price looked like it had the potential to fall below the significant support point of $0.365 yesterday but managed to hold ground and make some gains today. The majority of technicals remain in strong buying territory but analysts appear split on where the price might go next.
A professional trader on TradingView puts forward a case for XRP to move out of its current consolidation phase and begin a new upward trend in the following two weeks. However, a fellow trader believes more losses are to come when XRP pulls back to previous levels on the weekly Fibonacci cycle. He sees the weekly Fib -0.27 extension level of $0.21 as a possible final target for his short position.
Psychological resistance remains particularly strong at $0.40 but if XRP can break this then the mid-May high of $0.43 will likely be its next struggle. If the price of XRP begins to drop again, we’ll see support at the 4-hour simple moving average (SMA) 100 level of $0.363 and further support at the 61.8 percent Fib retracement of $0.355.