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On the network side, XRP is showing something that might push it up sooner rather than later: over the past few days, the number of active accounts has increased by almost 30%, reaching over 26,000 unique senders. This spike in activity rekindled user interest and may be a crucial indicator of the asset’s performance going forward. Increased interest in holding and transacting with an asset is frequently reflected in the growth of active accounts.
For XRP, which markets itself as a blockchain that focuses on payments, this metric is essential. Its viability is primarily determined by the volume of transactions and transfer usage. More market participants are transferring money, testing the network or making cross-border payments, as evidenced by a 30% increase in active wallets.
XRP's market performance
In terms of the market, the timing is significant. A descending trendline has been pressed against by XRP’s consolidation around $3.00, which has been above the 50- and 100-day moving averages. Although it has not yet reached the levels observed during July's explosive rally, buying volume has gradually increased again. On the other hand, the rise in network activity provides a basic level of support that might support a technical breakthrough.
When interpreting active accounts as a direct driver of price, one cannot ignore the overall risk surrounding XRP, though. Use of the network does not always correspond to long-term price growth; occasionally, it may even be a reflection of speculative exchanges or transfers. However, the increase in active accounts may work as a tailwind when paired with improving chart structure and market sentiment.
What's next?
It is possible that XRP will push toward $3.40-$3.50 if it is able to overcome its resistance around $3.10. This is especially true if user activity stays high. The downside is that if momentum is not maintained, the $2.78 support level may be retested.
As of right now, the 30% increase in activity shows that XRP is not at all stagnant. Interpret price action as a sign that participation is increasing once more, even though confirmation is still pending. This could pave the way for the subsequent stage in XRP’s market rally.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team