XRP Network Growth: How Will This Affect XRP Price?
In recent market developments, XRP has seen a remarkable increase in its adoption and network activity. This uptick could significantly impact the asset's price dynamics. Here is how this will play out for the XRP price.
XRP Price Analysis: Two Key Indicators Explained
Recent data from Santiment reveals that the XRP network activity has reached its highest levels since March. Two key indicators: Network Growth and Daily Active Addresses, have shown significant spikes:
- Network Growth tracks the number of new addresses created daily, which often indicates fresh adoption or existing users creating multiple wallets for privacy.
- Daily Active Addresses measures the unique number of addresses involved in transactions daily, reflecting the network's active user base.
Based on the analysis of this increase in both Network Growth and Daily Active Addresses, which suggests a surge in both new users and activity from existing users, the XRP price should have surged as well. Specifically proven, on July 18, the surge in new addresses and users that interacted on the network was reflected in XRP price surge of over 18% and by 9% alone over the past 24 hours.
Implications of Increased Network Activity
Such spikes are crucial for sustaining price rallies, as increased traffic provides the necessary momentum. Historical data indicates that rallies failing to attract attention typically fizzle out quickly. Therefore, the current surge in network activity may bode well for XRP's ongoing recovery.
Despite the positive on-chain metrics, XRP price has faced some resistance, dropping back to $0.55 after briefly surpassing $0.63. However, the increased network activity suggests a foundation for potential price stability and future growth.
XRP Price Prediction
The overall strength of the cryptocurrency market, particularly Bitcoin's performance, has contributed to XRP's recent rebound. Additionally, recent U.S. economic data and speculation about Federal Reserve rate cuts have positively influenced market sentiment. A slowdown in inflation, evidenced by lower annual Consumer Price Index (CPI) figures, has raised hopes for interest rate cuts starting in September, potentially boosting investor confidence in cryptocurrencies like XRP.
Technically, XRP faces a resistance point around the $0.5835 level, as indicated by current trendlines and the Relative Strength Index (RSI) positioned at 51. The 50-day Exponential Moving Average (EMA) also validates this resistance. Should XRP price remain below this threshold, a pursuit of the bearish trend is likely. Therefore, a cautious approach would be to consider selling below $0.5835 to avoid further declines.
