17.5 C
Amsterdam
29 September 2023
PumpMoonshot
Image default
Altcoins

XRP likely set for price rally as network activity heats up

  • XRP network’s address activity climbed to the second-highest level in the altcoin’s history. 
  • XRP Ledger’s native token has mildly decoupled from other altcoins. 
  • In March, the largest on-chain activity spike in XRP led to a 45% price rally. 

XRP Ledger’s native token XRP registered an increase in address activity on Monday, when more than 490,000 addresses interacted on the network, signaling an impending price rally. 

In the past, the largest spike in XRP address activity resulted in a 45% price rally in the next ten days. It remains to be seen how the altcoin’s price will react to the recent on-chain activity. XRP trades at $0.50 at the time of writing, up 4.2% in the last 24 hours. 

XRP network records high level of address activity 

XRP network recorded its second largest address activity spike of all time in the past two days, according to data from crypto intelligence tracker Santiment. On March 18, XRP saw its  highest address activity ever, and this was followed by a 45% rally in XRP price within the next ten days. 

Typically, high address activity is associated with rising demand for the asset among market participants. 

XRP address activity

XRP address activity 

The above chart shows the two large activity spikes against the altcoin’s price. 

Moreover, XRP has mildly decoupled from other altcoins in the crypto ecosystem, data from Santiment shows. The crypto intelligence tracker has recorded a 4% decoupling in XRP, supporting  the thesis of an upcoming price rally. If history repeats itself, a scenario similar to March 18 could come into play.

Analyst is bullish on XRP price rally, predicts breakout 

A widely-followed technical analyst who identifies as CryptoFaibik on Twitter (@CryptoFaibik) has presented a bullish thesis for XRP price. The analyst predicts an influx of strong buying volume in XRP, with bulls ready to push the asset’s price past the two-year descending trendline resistance at $0.5003, resulting in a breakout. 

XRP/USDT three-day price chart

XRP/USDT three-day price chart

However, if XRP price fails to break out of the symmetrical triangle formation, the bullish thesis for the altcoin would be invalidated. 

Related posts

Ethereum price analysis: ETH slowly continues lower, will $1,100 hold?

PumpMoonshot

Cathie Wood’s Ark Increases Its Coinbase Holdings

PumpMoonshot

Ethereum Marks One Year of PoS Transition: $1.5 Billion ETH Burned and Other Key Changes

PumpMoonshot