XRP price may be poised for a massive rebound amid a surge in network activity. The number of weekly active addresses has surged to a fresh record high, indicating heightened interest among traders. Despite this spike, XRP price is still struggling to gain momentum. As market interest rises, can XRP price stage a recovery?
XRP price today trades at $2.19 after a nearly 6% drop in 24 hours.
XRP Price Hints at a Rebound as Weekly Active Addresses Hit ATH
Data from Santiment shows that the number of weekly active XRP addresses has increased significantly over the past week. These addresses have surged to 1.15M, indicating high network usage and market interest.
This rise has also coincided with a surge in transaction activity. According to market analyst ScottMelker, XRP transactions have skyrocketed to $5 billion within 24 hours. At the same time, wallet activity has increased by more than 600%.
The surge in active addresses and transaction count may precede a rebound for XRP price due to rising interest. However, such a rebound is dependent on whether this rise in network activity is sustained.
Short Sellers Increase Positions on XRP
Data from Coinglass shows a massive increase in short positions on XRP. This is after a sudden spike in negative funding rates, which points towards increased pressure from short sellers betting that XRP price will drop further.
If the funding rates remain negative for an extended period, it increases the risk of a short squeeze. If Ripple price makes a sudden recovery, and these short sellers are forced to close their positions, it could accelerate the upward momentum.
XRP Price Retests Multi-Month Support as Sell Signal Emerges
XRP price has dropped to retest a multi-month support level at $2.14. Ripple has bounced from this support price before, but if sell-side pressure continues, it may lead to a breach of this critical level.
The MACD line has crossed below the signal line and formed a sell signal, which may push Ripple price lower. However, the Stoch RSI suggests that Ripple may be oversold, which could hint at possible seller exhaustion and trigger a reversal.
For Ripple price to avert a drop below the $2 psychological level, it needs to flip critical resistance at $2.60. If it makes a decisive breakout above this level, it could pave the way for XRP price to rally past $3.
The rising network activity suggests that market interest in Ripple is rising. If this surge leads to traders accumulating XRP during the dip, it could trigger an XRP price recovery.
The post XRP Price Analysis as Active Addresses Hit 1.15M Record High – Will Ripple Rebound? appeared first on CoinGape.
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