XRP Network Growth Signals Strength as Price Stabilizes Near $2
Key Takeaways
- After a weekend decline, XRP active addresses rebound, a sign of potential price stability.
- Ripple’s Q1 report highlights increased institutional demand and rising investor confidence.
- Technically, $2.06 acts as strong support; a successful defense that could prevent a drop to $1.80.
Over the weekend, active addresses on the XRP Ledger plummeted from 42,475 to 28,376. This decline happened as XRP’s price fell from $2.20, briefly showing signs that it could go lower.
But that has not been the case as XRP has been able to hold the line at $2. But how long will the altcoin be able to sustain this strength?
CCN examines the altcoin’s short-term potential in this analysis.
XRP Sees Notable Change
As of this writing, XRP’s price trades at $2.09. This value represents an 8.46% decline in the last seven days.
However, while the price dropped, on-chain data from Glassnode shows that interaction with the cryptocurrency is beginning to rise. As stated earlier, active addresses on the ledger were dropped over the weekend.
But today, the figure has risen to 31,352. Active addresses refer to the number of unique wallet addresses involved in successful transactions on a blockchain within a specific time frame, typically daily, weekly, or monthly.
A high or rising number of active addresses signals growing adoption or usage of a cryptocurrency. A decline in the metric, however, implies low interaction.
While this does not always happen, sustained growth in active addresses sometimes precedes a price increase. Historically, in XRP’s case, rising active addresses could trigger a price increase.
Therefore, if XRP’s network activity continues to rise, the altcoin’s value might not drop below $2 in the short term.
Ripple Q1 Update Positive for XRP
In addition, Ripple, the company behind the XRP token, released its Q1 report , emphasizing the positive momentum following the resolution of its legal battle with the U.S. SEC. The company noted that the lawsuit’s conclusion boosted investor confidence and renewed goodwill for the project.
Ripple also reported a notable uptick in the institutional demand for XRP, a development that could be bullish for the coin.
Reacting to the development, Ripple CEO Brad Garlinghouse affirmed the company’s commitment to regularly updating the community, emphasizing that ongoing transparency around XRP and Ripple remains a top priority.
“Moving forward, the XRP Markets Report will look a little different. As some may remember, the objective of publishing these reports starting in 2017 was transparency into Ripple’s holdings of XRP, which unfortunately was then used against us by the SEC and others,” Garlinghouse wrote on X.
XRP Price Analysis: No Intense Correction
From a technical perspective, the daily chart shows that XRP has strong support at nearly $2.06. This support was what helped the altcoin bounce above $2.30 recently.
The bulls are likely to defend this point again. If that happens, declining to the next support level at $1.80 is unlikely.
If that were to happen, XRP’s price might hold between $2.05 and $2.21. The market value might breach the resistance at $2.30 in a highly bullish scenario.
If that happens, XRP could rise to $2.80 near the 0.236 Fibonacci level.
However, if selling pressure increases, this prediction might not pass. If that were to happen, XRP’s price might decline to $1.62.
