The XRP Ledger is experiencing a notable increase in user engagement, with daily active addresses soaring from an average of 35,000 to over 295,000 within the past week.
Key Insights:
- Daily active XRP addresses have surged seven-fold to 295,000, indicating a resurgence in network activity.
- The number of whale wallets containing over 1 million XRP has reached a record 2,700, hinting at increasing interest from institutional investors.
- Derivatives trading volume has escalated nearly 300%, suggesting a rise in short-term speculative trading activity instead of long-term accumulation.
This significant uptick in activity underscores a seven-fold rise, reflecting renewed enthusiasm for the network, as reported by data analytics firm Santiment.
In tandem with the increased interaction, whale wallets holding more than 1 million XRP have reached an unprecedented level, a sign of growing institutional confidence in the token’s potential.
Whale Surge Reflects Increased Confidence in XRP Ledger
The recent increase in large holders could indicate a growing belief among institutional or high-net-worth investors regarding XRP’s long-term valuation.
Currently, XRP is valued at $2.2373, exhibiting a 2.7% rise for the day, with prices fluctuating between $2.10 and $2.32 over the past week.
Trading activities have surged, with a 248% increase in volume over the last 24 hours, showcasing a heightened focus from market participants.
According to Santiment, the XRP Ledger is witnessing substantial growth, both in terms of user engagement and influential holdings. The daily active addresses have averaged above 295,000 over the past week, a stark contrast to the typical range of 35,000-40,000 seen over the past three months.
As noted by Coinglass, open interest has climbed 3% to $4.02 billion, while derivatives trading volume has skyrocketed nearly 300%, reaching $9.57 billion.
This data suggests an influx of speculative trading rather than steady acquisition, which may foreshadow volatile price movements in the marketplace.
Broader developments may also be influencing the XRP dynamics. On June 11, VivoPower, a public company, announced a strategic partnership with Flair blockchain aimed at producing yield from its XRP holdings. This arrangement could signify a keen interest from institutional players seeking to maximize their crypto assets without the need to liquidate.
Additionally, in May, VivoPower made headlines with a $121 million investment in XRP, positioning itself as the first company globally to establish an XRP-focused treasury.
XRP Maintains Consolidation Trends
Currently trading near $2.236, XRP has experienced a volatile price trajectory across various time frames.
The daily chart indicates that the Relative Strength Index (RSI) is hovering around 53, reflecting neutral market momentum with no definitive overbought or oversold conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) line has recently crossed above the signal line, potentially indicating short-term bullish momentum.
In the 4-hour chart, a recent pullback was noted after prices reached a local high of $2.35.
The RSI has cooled to 42, with the MACD showing a bearish crossover and increasing divergence, signaling a loss of momentum for bulls in the short term. This trend aligns with a retreat to the lower Bollinger Band region, suggesting potential support close to $2.21.
Analysis of the 1-minute chart shows price action is consolidating within a narrow range between $2.23 and $2.24, with flattening RSI and MACD values illustrating indecisiveness among traders. With trading volumes remaining subdued, a breakout does not seem imminent.
Should XRP manage to maintain its position above the 20-period Simple Moving Average on the 4-hour chart, a rebound toward the $2.30 mark may be plausible. Conversely, a failure to uphold support at $2.21 could pave the way for further declines toward the $2.10 level.
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