What to know:
- The daily active addresses of XRP rose from 23,000 to 39,500 since June 14.
- XRP is trading near $1.05, recording $1.40 billion daily trading volume and having $65.40 billion market capitalization.
- XRP needs to take control over $1.0988 resistance, otherwise, downside risks towards $1.01 and $0.985 still exist.
XRP price is showing mixed signals as on-chain activity increases while the token continues to face pressure on the price chart. Even though the number of daily active addresses has increased significantly over the past two weeks for XRP, yet the cryptocurrency price is still below important resistance levels, meaning that there is more work for buyers to confirm a recovery.
As of the time of writing, XRP was trading at $1.05, down compared to the previous day. The 24-hour trading volume of XRP reached $1.40 billion, while its market capitalization is at $65.40 billion, taking 3.15% of the total crypto market.
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XRP Network Activity Continues to Grow
According to a recent post by crypto analyst Ali Martinez, there has been observed a growth of XRP network activity. In particular, according to the data from the crypto analyst, the daily active addresses of XRP have risen from 23,000 on June 14 to nearly 39,500.
In most cases, an increase in active addresses is the evidence that more users interact with the network by sending, receiving or using transactions. Despite the fact that higher network activity does not necessarily result in immediate price rises, it is usually considered a good sign of increasing blockchain usage and growing interest from investors.
XRP Price Could Target $1.16 if Bulls Reclaim Momentum
Despite stronger on-chain participation, XRP price remains in a short-term downtrend on the four-hour chart. The downtrend started after a bearish breakdown of the market structure near $1.12018, and now the cryptocurrency continues trading below its major moving averages.
The more important level is the 55-period EMA at $1.0988, which has already several times restricted recovery attempts. Until XRP breaks above this resistance level on the four-hour chart, the general technical picture will be favorable for sellers.
Moreover, the four-hour chart confirms the recent swing high at $1.16296 and the swing low near $1.01, showing that lower highs and lower lows form the current trend.
Why This Matters for XRP Investors
The current technical situation makes XRP to occupy an important position. The Average True Range (ATR) of XRP is 0.0200, which means that its price moves in a relatively compressed range. Lower periods of volatility are usually followed by larger directional movements when the market finds a direction.
If the XRP price succeeds in breaking above the 55 EMA at $1.0988, then this move will refute the current bearish scenario and can give way to another attempt to reach $1.16296.
However, if the sellers keep defending important resistance levels, the XRP price may return to support near $1.0342 and further towards $1.01. The breakdown below that level could drive the price to $0.985.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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