The entire crypto market is enjoying a strong rise, but XRP is lagging behind, remaining stuck below the crucial $0.55 level since early October. Analysts and investors are watching for signs of strength and confirmation that XRP is poised for significant gains this market cycle.
Santiment’s key data offers a glimmer of optimism. This shows a notable increase in active wallets on the XRP Ledger, which could signal growing interest and accumulation.
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As the broader market continues to rise, the next few days are crucial for XRP. Investors are hoping for a break from the weeks of sideways consolidation that kept price action subdued.
A decisive move above $0.55 could trigger bullish momentum and place XRP on the right track to accompany the broader market recovery. For now, the market eagerly awaits further developments, with many anticipating that XRP’s moment may finally be approaching.
XRP ledger activity signals a shift
XRP remains one of the most popular altcoins in the crypto market, but many investors are increasingly concerned as the price has struggled to reclaim local highs around $0.65. Despite the lack of upward momentum, Santiment critical data offers a glimmer of hope.
The XRP Ledger recently experienced a significant increase in activity, with 35,799 unique wallets making at least one daily transfer, marking the highest level of activity in over three months. Furthermore, 3,858 new wallets were created in a single day, the biggest increase in seven months.
This increase in network activity is a promising sign for XRP, as spikes in active wallets and new addresses often precede large price movements. Growing interest in XRP could be an early indicator of an imminent change in price action, especially as the broader market trends higher.
However, the price must still exceed local highs of around $0.65 to confirm an uptrend. While on-chain data points to potential growth, the next few weeks will be crucial for XRP price movement.
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If it manages to reclaim key resistance levels, XRP could finally align itself with the overall market’s bullish sentiment, providing a more optimistic outlook for its investors.
Price Action: Technical Levels to Watch
XRP is trading at $0.555 after three weeks of sideways movement. It remains below the 4-hour exponential moving average (EMA) 200 but is now testing this key indicator as resistance.
A successful break above the 200 EMA, followed by consolidation and holding of it as support, would likely signal a rise to higher supply zones around $0.60 and potentially $0.65. This breakout would confirm renewed bullish momentum, encouraging investors to wait for a clear upward trend.
However, if XRP fails to break above the 200 EMA and these critical resistance levels, a pullback to $0.52 or even lower could be imminent. Failure to meet this resistance would indicate further consolidation or even a correction as the market seeks lower liquidity levels.
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As XRP continues to test this key technical level, the next few days will be crucial in determining whether the altcoin can finally break out of its trading range and follow the broader market’s bullish sentiment.
Featured image of Dall-E, TradingView chart