- With an increase of over 620%, XRP active addresses swelled to 462,000.
- The resistance at $3 recruited the price around the $2.40 mark.
- A key moment for traders would be whether XRP remains above or below the mark of $2.
A massive hike for XRP was witnessed, where within a period of four days the active addresses have jumped from 74,589 to 462,650 according to data collected from February 28 to March 3. Such movement is synchronized with an increase in the price of XRP, which shot up from $2.15 to $2.40 within the same period.
Therefore, this sudden increase in network activity suggests that more people are interacting with the token and possibly indicates institutional transactions or market speculation. Although the activity’s hopeful development is most probably bullish, traders have been holding back as the price of XRP fluctuates around important support lines.
Explosive Growth in Network Activity
According to the chart, the active addresses of XRP remained relatively constant from February 7 to February 27, fluctuating between 200,000 and 350,000. However, a sudden fall in network activities led to a bottom of 74,589 active addresses on February 28. That figure quickly rose to 462,650 in just days, marking one of the largest weekly hikes in XRP history. This growth coincides with wider trends in the markets, whereby sudden spikes in activity usage are often a prelude to large price movements.
The price of XRP has not been shown to differ significantly from the active addresses. The price peaked at around $3.00 and then fell to $2.40, which makes a strong resistance point. Even though activity and price movements through time haven’t always corresponded, growing activity clearly signals increasing future demand for XRP transactions. If the active address count continues to climb, it would suggest increased liquidity and a possible stability in price above the psychological $2.00 level.
What’s Next for XRP?
Currently, traders are wondering whether XRP will keep its price above $2.40 or will decline below $2.00 to lower the sentiment. They wonder if such a spike can be classified as a trend that is sustained or a temporary transaction spike. In the case of continuous active transactions, this could mean that XRP might make another push toward $3.00, while a lower level of engagement might indicate consolidation. At this point, the market will react to the sign on whether the expansion of XRP’s network will mean long-term price gains.
