- XRP’s active addresses tripled within a month, signaling increased user engagement despite mixed market sentiment and regulatory uncertainty surrounding the Ripple lawsuit.
- While XRP’s price shows bullish long-term potential, breaking key resistance levels or dropping below crucial support points will determine its next move.
Ripple’s XRP has been making headlines lately, as the number of active addresses on the network tripled within a month. This surge in activity comes amid a broader market correction, raising questions about what’s driving the renewed interest and what it could mean for XRP’s price trajectory.
XRP Active Addresses Skyrocket
According to on-chain data from Glassnode, XRP’s active addresses jumped from 89,606 on February 21 to an impressive 543,000 by March 2. Although there was a slight decline afterward, the number remained strong at 531,000 on March 7 before settling at over 370,000 on March 10. Such a significant increase in network activity often indicates growing user engagement and potential renewed demand for the token.
Regulatory Uncertainty and Market Sentiment
While network activity surged, there was a notable decrease in XRP’s exchange outflows from Binance. However, on March 7, the largest daily outflow in a month was recorded, with over $465 million worth of XRP leaving Binance. This discrepancy between high network activity and mixed exchange outflows raises important questions about investor sentiment.
One key factor dampening optimism was former U.S. President Donald Trump’s decision to create a Strategic Bitcoin Reserve instead of a multi-crypto reserve. This move dashed hopes that the SEC would soon drop its appeal in the ongoing Ripple lawsuit. The SEC has been challenging Ripple’s Programmatic Sales of XRP, filing its appeal on January 15. Speculation about a potential settlement grew after the resignation of former SEC Chair Gary Gensler and the appointment of Mark Uyeda as acting Chair. If XRP had been designated a national Crypto Strategic Reserve Asset, the SEC might have been under pressure to withdraw its appeal, potentially boosting the token’s market value.
XRP Price Outlook
XRP’s price has been fluctuating, currently trading above the 200-day but below the 50-day Exponential Moving Average (EMA). This suggests a bullish long-term outlook but a bearish short-term trend. If XRP breaks past the 50-day EMA, bulls might target the March 2 high of $3 as the next resistance level.
Conversely, a decline below the March 4 low of $2.2 could expose sub-$2 levels, with the next major support at $1.93. If bears push the price below $1.93, the February 3 low of $1.7024 could come into play.
The recent surge in active addresses suggests strong engagement in the XRP ecosystem. However, regulatory uncertainty and market sentiment continue to influence price movements. Traders and investors should keep a close eye on developments in the Ripple lawsuit and broader crypto market trends to anticipate XRP’s next moves.
