- XRP has seen a 3% price increase in early September, sparking bullish sentiment among analysts.
Despite the positive outlook, declining active addresses raise questions about the sustainability of this rally.
As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. The recent price increase in XRP has certainly caught my attention, especially given its potential to replicate the massive surge it experienced in 2017-2018.
Following a substantial decrease in August, which saw Ripple‘s [XRP] price fall to a low of $0.43 on the 5th of August, it appears that the asset is taking a new path as we enter into September.
Over the recent span of days, I’ve noticed a glimmer of recovery in XRP‘s performance. At present, it is trading at approximately $0.5668, representing a 3% surge in value over the last 24 hours. This upward price movement has instilled a degree of optimism among investors, particularly given the bearish sentiment that characterized the tail end of August.
Massive bull run on the horizon?
Multiple cryptocurrency experts have offered their insights into the recent fluctuations in XRP‘s pricing, igniting debates about possible future trends for this digital asset.
Specifically, Javon Marks, a recognized cryptocurrency expert, pointed out striking resemblances between the recent fluctuations in XRP‘s value and the trends seen prior to its monumental 57,000% increase from 2017 to 2018.
Marks suggested that XRP could be on the brink of another significant upswing, one that has not been seen in the last six to seven years.
A different analyst, going by the name ‘Dark Defender,’ also expressed a hopeful opinion about XRP. In his latest assessment, he noted that XRP has been holding steady within a narrow band ranging from $0.6649 to $0.3917 for quite some time.
Dark Defender underscored the significance of the $0.6649 mark, as it resides over the crucial weekly Ichimoku cloud – a technical tool often used to forecast potential price trends ahead.
As an analyst, I’m observing a potential breakthrough that could mark the start of a substantial bullish trend for XRP, potentially propelling the asset near the Fibonacci level of $18. This observation point of $18. In my analysis suggests Elliott Wave Theory.
Fundamental outlook on XRP
Although the technological aspects seem optimistic regarding XRP, its broader context offers a more intricate perspective. According to Santiment, there’s been a significant drop in active XRP wallets over the recent weeks.
Since reaching over 105,000 on August 11, the number of active addresses has declined to around 80,200 as of now. This decrease in active addresses may suggest less user interaction or trading action, potentially leading to a short-term decrease in XRP‘s price due to reduced activity.
Instead, let’s consider this: The opposite trend is observed in XRP‘s open interest. This metric, which represents the total value of active derivative contracts, has experienced a small upward movement, climbing by 2.50% to reach $615.46 million.
Read Ripple’s [XRP] Price Prediction 2024-25
Conversely, the overall trading volume for these contracts, represented by open interest volume, has dropped by 12.52%, amounting to approximately $721.51 million now.
An increase in open contracts together with a drop in trading activity could indicate that market participants are taking on more positions but are also showing caution, potentially preparing for potential market volatility or large price swings in the upcoming period.
Read More
- GOAT PREDICTION. GOAT cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- DOP/USD
- JASMY PREDICTION. JASMY cryptocurrency
- MBL PREDICTION. MBL cryptocurrency
- Yellowjackets Season 3 Reveals First Cast Photos and One of Them is Devastating
- CHAT/USD
- BADGER PREDICTION. BADGER cryptocurrency
- BRN/USD
2024-09-03 16:08