XRP, the digital asset associated with Ripple, has recently seen a significant uptick in on-chain activity, particularly in network burns. On April 24, XRP burns surged to a 10-day high, with nearly 4,000 XRP tokens being burned in a single day. While such surges often indicate high network usage and increased demand, XRP’s price is still grappling with key resistance levels. The asset has managed to consolidate around the critical $2.20 mark, but its struggle to maintain upward momentum is evident.

The increase in XRP burns is noteworthy, as it directly impacts the token’s circulating supply. A higher burn rate reduces the overall supply of XRP, which theoretically could lead to an increase in price if demand remains strong. In addition to the burn spike, XRP has seen relatively high transaction volumes for the past month, with daily transaction counts hovering around two million. This consistent network activity reflects effective use of the XRP Ledger, which may lead to long-term demand for the asset, especially if the burn rates continue to increase.

However, despite these promising indicators, XRP’s price action has not been able to break out of its resistance levels. As of late April 2025, XRP continues to face significant resistance near the $2.20 mark, which is also the location of its 100-day exponential moving average (EMA), a historically important technical indicator. The 100-day EMA has often acted as a critical barrier, preventing further upward movement in the past. XRP has attempted to break through this resistance but has consistently been rejected, suggesting that buyers are not yet able to gain the upper hand in the market.

The price has also been contained within a descending price channel since late 2024, which has added to the bearish sentiment. This ongoing downward trend suggests a lack of conviction among buyers, as the asset has been unable to break free from the channel. Despite the recent positive on-chain activity, the absence of a strong volume spike during price rises suggests that the current upward movement lacks sufficient momentum to push through the critical resistance zones.

For XRP to reverse its current trend and move toward a more sustained bullish rally, it needs to break and hold above the $2.20 level. A clear break above this resistance level would pave the way for a move toward the next significant resistance zone between $2.40 and $2.50. Should XRP succeed in overcoming these levels, it could trigger a longer-term uptrend, with the $2.50 level potentially acting as a springboard for further gains. If the price manages to flip these resistance levels into support, it would be a strong signal of a bullish reversal.

However, XRP’s chart structure suggests caution. Although the burn rate and transaction volumes are positive, they alone may not be enough to trigger a breakout. Price action must coincide with these fundamentals for a true bullish trend to emerge. As long as XRP remains trapped between technical resistance and solid fundamental activity, it may continue to consolidate in its current range. Without a clear breakout, the asset could struggle to join in any broader cryptocurrency market rallies, as its price remains tethered by resistance.

One of the most significant factors in determining whether XRP can break above its current resistance is the broader market sentiment. Cryptocurrency markets are notoriously volatile, and XRP’s price action is often influenced by macroeconomic factors as well as sentiment within the digital asset space. While XRP’s on-chain activity is promising, it will need to see a broader shift in market sentiment to push through these key technical barriers.

In conclusion, while XRP’s rising burn rate and consistent transaction volume indicate positive network activity, the asset is still facing key resistance levels that could prevent a sustained rally. For XRP to make a meaningful price recovery, it needs to break above the $2.20 resistance zone and turn key levels like $2.40 and $2.50 into support. Without a significant breakout, XRP could continue to be trapped between technical resistance and a solid but uncertain market structure. Traders and investors will need to closely monitor the price action and on-chain metrics in the coming weeks to determine whether XRP can overcome its current challenges and embark on a more substantial upward trajectory.