XRP Price Analysis: Record High Active Addresses

XRP price recently experienced a significant drop, but a surge in network activity suggests a potential rebound. The number of weekly active addresses reached a record high of 1.15 million, signaling heightened trader interest. This increase, despite the price dip, raises questions about XRP's future price movement.

XRP Price and Network Activity

At the time of writing, XRP is trading at $2.19, following a near 6% drop in 24 hours. However, data from Santiment reveals a substantial increase in weekly active XRP addresses, reaching 1.15 million—a new all-time high. This indicates significant network usage and growing market interest. This surge correlates with a reported $5 billion increase in XRP transactions within 24 hours, according to market analyst ScottMelker, along with a more than 600% increase in wallet activity.

While this heightened activity could precede a price rebound, sustained network engagement is crucial for a sustained recovery.

Short Sellers Increase Pressure

Data from Coinglass shows a significant rise in short positions on XRP, following a spike in negative funding rates. This indicates increased pressure from short sellers anticipating further price drops. Persistent negative funding rates heighten the risk of a short squeeze—a scenario where a sudden price increase forces short sellers to cover their positions, potentially accelerating upward momentum.

Technical Analysis: Support and Resistance

XRP recently retested a multi-month support level at $2.14. While it has bounced from this level before, continued sell-side pressure could lead to a breach. The MACD line crossing below the signal line suggests a sell signal, potentially driving prices lower. However, the oversold conditions indicated by the Stoch RSI hint at potential seller exhaustion and a possible price reversal.

To avoid dropping below the crucial $2 psychological level, XRP needs to break through the resistance at $2.60. A decisive breakout above this level could propel XRP past $3.

The increased network activity points toward growing market interest. If this translates into accumulation by traders during the dip, an XRP price recovery could be on the horizon. However, market conditions are constantly evolving. Remember that all investments come with risks.

Frequently Asked Questions (FAQs)

• Could XRP rebound? Yes, a rebound is possible with sustained buying pressure.
• What does the surge in network activity mean? It points towards higher trading volume and potentially increased interest from larger investors.
• Could XRP fall below $2.14? A drop below $2.14 is possible if selling pressure outweighs buying interest.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Conduct thorough research before making investment decisions. Codeum is not liable for any personal financial losses.