$XRP ’s price saw a sharp decline this week, accompanied by a drop in weekly active addresses to 312,000—down significantly from 495,000 a year ago. However, the remittance-focused token rebounded by 4% on Friday, with resetting funding rates signaling the potential for renewed upward momentum. This comes as XRP investors recorded $2.2 billion in profits for the week, following $1.4 billion in gains when the token hit $1.91 midweek. While the market shows mixed on-chain signals, some factors suggest XRP could rally toward new highs.
Diverging Whale Activity and Reduced Network Engagement
On-chain data paints a mixed picture of investor sentiment. XRP’s network activity has softened, with wallet movements primarily driven by traders and investors rather than utility-driven transactions. Whale activity has also been conflicting: smaller whales holding 1M to 10M XRP accumulated 180 million tokens during the week, while larger whales (10M to 100M XRP) offloaded over 340 million. Despite this disparity, spot exchanges recorded net outflows of XRP, hinting at a bullish outlook as investors shift holdings off exchanges in anticipation of price appreciation.
Key Indicators Signal Bullish Potential
Technical analysis adds weight to the bullish narrative. Indicators such as the RSI and Stochastic Oscillator remain above neutral, reflecting strong momentum. Additionally, reduced selling pressure, coupled with continued accumulation by smaller-scale whales, positions XRP for a potential surge. However, the token must overcome a critical psychological resistance level at $3.00 to sustain its rally.
If XRP can maintain its current momentum and surpass profit-taking zones, it could continue its upward trajectory, driven by strong market sentiment and strategic positioning by investors. While uncertainties persist, XRP’s potential slingshot effect could lead to significant gains for those prepared to capitalize on its next move.
