XRP Price Outlook: Network Activity Jumps 654%
XRP traded for about $1.50 this week as market participants monitored XRP Ledger activity that increased by more than 650%. XRP currently trades for $1.49, up about 1.32% on the day. While XRP underperformed the market rally slightly, the token has had a strong week, up over 50% against the market.
XRP Price While The Crypto Market Recovers
Improving conditions in the broader market and greater market activity has helped boost XRP price. The global crypto market capitalization rose 2.47% over the past 24 hours to $2.68 trillion. Bitcoin touched $80,000 before backing off after a rally that gained over 20% across three trading sessions.
With greater interest from crypto funds, Bitcoin trading volume increased 78% over the past 24 hours with a concurrent 7-day rally in crypto funds. Bitcoin ETFs are witnessing a positive shift in activity for the seventh consecutive day. Ethereum also traded positively, spending most of yesterday above $2,500 in the range of its earlier price action. Sharp increases in XRP Ledger activity support the token.
Bottom line: XRP continued its bullish price action, consolidating against the broader crypto market. Bitcoin leading the recovery against $80k boosted sentiment while weeks of pent up demand from investments in crypto funds made a positive shift in trading activity.
Per data reportedly gathered by analyst Ali Charts, XRP saw a 654.71% spike in the number of active addresses. With the number of active addresses estimated at 47,180 before and 356,070 after the data were compiled, it can be determined that engagement with the XRP ledger increased substantially.
The active address data conveys higher on-chain activity. By itself, that doesn’t mean the XRP Price will rally, etc. Rather, it may presage higher activity on the XRP ledger., and even heightened volatility from the resulting increases in unpredictable market behavior and increased network participation.
XRP Options Volume Jumps 299% as Volatility Expectations Increase
Data from XRP derivatives was mixed. Total derivative trading volume fell 8.19% to $8.07 billion, which means trading volume was down across major trading venues.
However, open interest increased by 0.35% to $3.73 billion, reflecting the fact that derivative traders there continued to hold their leveraged positions. The strongest movements were in the options market.
Volumes of XRP options reached $36.70 million, up 298.79%, while options open interest rose 25.73% to $140.74 million. These numbers show a rise in options trading to protect against price declines and/or a rise in the speculation of price volatility.
XRP Price Prediction: Can Bulls Push Toward $1.60?
After a 1% increase during the last 4-hour trading period, XRP is currently exchanging hands for around $1.4897. After breaking out of the $1.00 support area, XRP consolidated around $1.49.
The immediate resistance is around $1.50. The RSI at 59.94 is in an overbought area, but not so highly overbought to signal an immediate reversal. The MACD is still below the signal line, meaning that more consolidation may be needed before another breakout. This is likely to happen in the following days.
A consolidation above the $1.50 mark with strong buying pressure and a 4 hour close above that level would be a strong indication that the bulls are in control and would push the price to the next resistance at $1.60. Buying pressure above that level could even drive the price to the next resistance level at $1.70. A rejection at $1.50 and selling pressure would push the price back to $1.40. If selling pressure were to break support at $1.40, then we could see XRP test $1.30.
There is a clear level of interest in XRP as evidenced by the massive spike in network activity. The massive spike in activity is due to a 654% increase in active addresses. Aligned with the recent activity on the XRP ledger, a sharp increase in options activity is also indicating an expectation of large price movements.
Until we see a definite break of resistance at $1.50, support continues to be at $1.50, where a breakout would indicate a possible extension of the current rally up to $1.60, with acceptance at that level potentially leading to a push to $1.70. Their resistance at $1.50 and support at $1.40 may indicate an area of interest in the price for the bulls and bears, respectively.
