by Vincent Muthee
XRP is eyeing a fresh rally as the network shows immense growth. As per data, the network has recorded a 8-month high in network growth which could potentially reignite a bullish rally.
On the day, XRP is already showing signs of recovery from the recent dip. The price is up by over 3.5% sitting at $2.30 level. However, a fresh rally could reignite a push towards $3.
21,595 New XRP Wallets Created Over the Last 48 Hours
According to recent data, the XRP network has experienced significant growth. Data by Santiment shows that the network has recorded 21,595 new wallets over the last 24 hours. This shows strong resurgence in conviction as the coin eyes recovery from recent losses.
According to Santiment, the recent surge in network activity shows the highest level of growth in 8 months. This surge came as the price of XRP recorded a 12+% surge yesterday before dropping to 3.5% as of this writing.
Nonetheless, the surge in network activity could potentially spark a rally. Market participants often attribute network growth to strong confidence in the cryptocurrency.
Looking back at the network growth in mid July as indicated by the Santiment chart above, the price responded positively climbing in tandem with the rise in the number of new wallets to reach $3.4. In case a similar rally occurs, the price of XRP could climb towards $3.5.
XRP ETFs Continue to Spark Optimism
Some big market players have already filed for XRP ETFs. These include firms like the $1.5T Franklin Templeton, WisdomTree, ProShares, Grayscale, 21Shares and others.
While approval decision for these ETFs is now delayed due to the ongoing US shutdown, the ETFs are driving optimism. For instance, market analysts and YouTuber Crypto X AiMan believes that an XRP ETF launch would be massive for holders.
“BILLIONS OF @Ripple ($XRP) WILL BE BOUGHT VERY SOON – Wall Street & institutions are officially coming for XRP. This changes EVERYTHING for $XRP holders,” Crypto X AiMan wrote on X.
His comment came as Canary Capital CEO Steven McClurg said “we’re ready to launch the XRP ETF next week” while speaking at the Ripple Swell event.
XRP Price Analysis: Technical Indicators Paint a Grim Short-Term Outlook
Despite the ongoing optimism, technical indicators are showing that the price could continue to struggle, for the short-term. The daily chart on TradingView shows that XRP has been a descending channel since mid channel.
However, while this setup is interpreted to be bullish, the relative strength index (RSI) and Moving Average Convergence Divergence (MACD) shows otherwise. The RSI currently sits at 40.64 dropping from an average of 45.38. Continued dip in the RSI signals bearish momentum will prevail in the short-term.
On the other hand, the MACD coincides with the RSI. XRP’s MACD reading shows bearishness following as the MACD line sits at -0.0808 below the -0.0688 signal line. The histogram bars are also red showing potential for short-term price struggles.
For a bullish rally towards $3, crypto analyst pseudonymously known as “Crypto VIP Signal” notes that XRP has to wipe out the resistance between $2.65 – $2.75.
“The price attempted to break through the resistance but was rejected. It is currently making lower lows and needs to break above the resistance area to gain some bullish momentum…Major Resistance Area: $2.65-$2.75,” Crypto VIP Signal remarked.
A push past this level, will potentially open the door for a rally towards $3. However, short-term correction could occur before XRP embarks on a bullish rally as indicated by the technical indicators. But nonetheless, the network and potential XRP ETF approval boosts the market sentiment.
#blockchain #crypto, #decentralized, #distributed, #ledger
