The entire crypto market is enjoying a strong rally, however XRP is still lagging, remaining stuck below the key $0.55 level since early October. Analysts and investors are closely watching for strong signs and confirmation that XRP is poised for significant gains in this market cycle.
Key data from Santiment offers a ray of optimism. It shows a significant increase in active wallets on XRP Ledger, which could signal growing interest and accumulation.
As the broader market continues to move higher, the coming days are pivotal for XRP. Investors are hoping for a breakout from weeks of sideways consolidation that has kept its price low.
A decisive move above $0.55 could spark bullish momentum and put XRP on track to catch up with the broader market. The market is now eagerly awaiting what happens next, with many predicting that XRP’s moment is finally coming.
XRP Ledger Activity Signals Change
XRP remains one of the most popular altcoins in the cryptocurrency market, however many investors are growing concerned as the price has struggled to regain its local highs around $0.65. Despite the lack of bullish momentum, key data from Santiment offers a glimmer of hope.
XRP Ledger has recently experienced a significant spike in activity, with 35,799 unique wallets making at least one transfer per day, marking the highest level of activity in more than three months. Additionally, 3,858 new wallets were created in a single day, the largest increase in seven months.
This spike in network activity is a promising sign for XRP, as spikes in active wallets and new addresses often precede major price movements. The increased interest in XRP could be an early indicator of an impending change in price action, especially as the broader market trends upward.
However, the price still needs to break above the local high around $0.65 to confirm the bullish trend. While network data points to upside potential, the coming weeks will be crucial for XRP's price movement.
If it can reclaim key resistance levels, XRP could finally align with the overall bullish sentiment of the market, providing a more optimistic outlook for investors.
Price Action: Technical Levels to Watch
XRP is trading at $0.555 after three weeks of sideways trading. It remains below the 200 4-hour exponential moving average (EMA), but is currently testing this key indicator as resistance.
A successful breakout above the 200 EMA, followed by consolidation and holding it as support, would likely signal a rally to higher supply zones around $0.60 and potentially $0.65. Such a breakout would confirm fresh bullish momentum, encouraging investors to wait for a clear uptrend.
However, if XRP fails to break above the 200 EMA and these key resistance levels, the price is likely to drop to $0.52 or even lower. Failure to break above this resistance level could see the price continue to consolidate or even correct as the market looks for lower liquidity.
As XRP continues to test this important technical level, the next few days will be pivotal in determining whether the altcoin can break out of its tight trading range and follow the overall bullish trend of the market.
