XRP Active Addresses Surge Despite Price Dip
XRP Active Addresses Surge Despite Price Dip
Despite XRP's price dropping below $2 and experiencing a 17% decline over the past week, on-chain data reveals a significant increase in network activity. This intriguing divergence raises questions about the overall market sentiment surrounding XRP.
With the final Ripple lawsuit decision expected on April 16th, the XRP community appears resilient, even amidst broader macroeconomic headwinds. This unwavering community support is evident in the recent surge of active addresses.
XRP Active Addresses Triple in Two Weeks
Glassnode data shows a remarkable increase in active XRP addresses between February 21st and March 10th. The number more than tripled, rising from approximately 89,606 on February 21st to roughly 543,000 by March 2nd. While a slight dip followed, the number of active addresses rebounded to 531,000 on March 7th and remained significantly above previous levels at over 370,000 as of March 10th.
Number of XRP Active Addresses. Source: Glassnode
Binance Outflows Decline
Interestingly, XRP exchange outflows from Binance have also shown a significant change. On March 7th, over $465 million worth of XRP left Binance, the highest daily outflow in a month. However, outflows have sharply decreased in the following three days, suggesting reduced selling pressure or investor hesitancy to move assets off centralized platforms.
XRP Outflow (USD) from Binance. Source: CryptoQuant
Analyzing the Discrepancy
The disparity between XRP's price action and its network activity raises important questions. The surge in active addresses typically indicates increased user engagement, suggesting growing demand or higher transaction volume. Conversely, the decline in Binance outflows could signal reduced accumulation pressure or uncertainty about the price direction.
Some analysts suggest that XRP's price decline, despite robust network participation, may reflect short-term speculative trading rather than underlying fundamental weakness. The drop in exchange outflows might indicate traders holding onto their assets instead of selling.
XRP Weekly Price Chart. Source: BeInCrypto
Ultimately, the market remains dynamic. While the data points to strong activity on the XRP Ledger, whether this translates into a future price recovery or sustained consolidation remains uncertain.
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