- Historical patterns in XRP’s daily active address activity may indicate a forthcoming price pump.
- Despite the recent slump, on-chain data reveals a promising surge in XRP’s daily active addresses, mirroring previous instances preceding major price rallies.
The cryptocurrency XRP, a product of technology company Ripple, has recently shown signs of repeating a pattern that, in the past, has triggered major price pumps. Specifically, there has been a notable increase in XRP’s daily active address activity, which could signal another surge on the horizon.
In the realm of cryptocurrencies, daily active addresses are a critical indicator of the network’s vitality. The term refers to the unique sender and receiver addresses active in a given day. It represents real on-chain demand and serves as a strong predictor of potential price movements.
Regrettably, XRP hasn’t yet managed to harness the energy of the wider market rally to breach the $0.50 mark. However, despite this seemingly bearish outlook, on-chain indicators suggest the asset may be in the preparatory stages of a price pump, echoing patterns observed earlier this year.
Cryptocurrency analyst Ali Martinez recently brought this correlation into focus. Drawing on data from market intelligence provider Santiment, Martinez identified that the three previous significant price increases in XRP’s value followed significant spikes in daily active address activity.
To illustrate, a significant boost in daily active addresses on January 6th, 7th, and 11th was followed by a substantial upswing in XRP’s value. The price per unit increased from $0.329 on January 2nd to a high of $0.423 on January 24th.
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Moreover, the most sizeable price pump for XRP this year in March was also preceded by an observable increase in daily address activity. On March 20th, XRP’s active addresses surged to a robust 872K, which was followed by an increase in the cryptocurrency’s price from $0.385 on March 21st to $0.571 on March 29th, marking a 48.3% increase in just nine days.
More recently, another increase in daily address activity was observed on May 29th, with the count reaching 708.53K. Consequently, the value of XRP climbed from $0.448 to $0.517 on June 13th.
The question at hand is whether history is poised to repeat itself. Over the past four days, XRP’s daily active addresses have seen an uptick, exceeding 130K each day. This year, such a consistent increase is a first, hinting at the possibility of an imminent price rally, mirroring the patterns witnessed previously.
Nevertheless, while these signs are encouraging, they should not be considered investment advice. Cryptocurrency price trends are subject to change, and the market’s volatility is legendary. As of now, XRP is trading at $0.4799, down 1.17% in the last 24 hours. Despite not capitalizing on the recent market rally, XRP has shown a propensity for independent runs, as witnessed in March and May.
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