Major cryptocurrency XRP is surging in transaction volume even as its price index hovers around the $1.3 support level, according to a post by popular analyst Ali Charts on X, who cited data from Santiment. The analyst said total value transacted on the XRP ledger reached just shy of $50 billion on October 18, 2026, a major move given the ongoing long-term bearish setup.
Ali tweeted:
The sudden spike in on-chain value transfer left analysts puzzled, as it had hovered around the $1 billion valuation on October 16 and 17, prompting debate over the sharp uptick that propelled it several dozen times higher.
Interestingly, the sudden increase in transaction volume wasn’t accompanied by a price increase, but by a price decrease, as XRP dipped slightly to $1.25. Analysts have touted this level as a major support baseline, and the market’s next move will be crucial: a downward move supported by high transaction volume could signal major capitulation for the digital asset, while a rebound could mean a substantial price recovery.
Is a Bottom Confirmed?
In trading circles, a sudden price increase followed by heavy trading volume is often seen as a strong sign of an impending price squeeze. However, XRP has since rebounded to the $1.3 valuation, suggesting significant seller exhaustion in the market.
Ali believes that as long as the $1.25 price support level holds, the digital currency has a path towards the next resistance level at $2, which would represent a price increase of around 60% from current levels.
Why Traders Need to Be Cautious
The sudden spike in transaction volume suggests the cryptocurrency may experience significant price volatility in the near future. Although Ali’s analysis suggests the path toward $2 is being paved right now, traders should exercise caution. On-chain volume measures the value of coins moved, not necessarily the number of buyers or sellers. It could go either way.
The sudden on-chain increase could also be a large player moving funds around, not organic activity that would help the broader XRP ecosystem. The $1.25 support level hasn’t been breached this time around, but it could be soon and open the door to a fall to $1 or even lower.