XRP’s Resurgence in the Cryptocurrency Market
XRP, a prominent altcoin, has rekindled investor interest with a notable resurgence in the cryptocurrency market following a period of inactivity. Overshadowed by its legal proceedings with the U.S. Securities and Exchange Commission (SEC), XRP now exhibits a remarkable recovery. The altcoin has risen over 25% on a weekly basis, making it the third-largest by market capitalization. Experts are optimistic about XRP’s potential to reach $3 in the short term and $6 in the long term.
XRP Network Wallet Activity Reaches New Heights
In a significant development, on-chain data reveals unprecedented activity within the XRP network. During the year’s initial months, over 638,000 new wallets were created, bringing the total number of active wallets close to 6.5 million. This milestone signifies the highest user engagement in the network’s 12-year history. Both retail investors and institutional players are increasingly gravitating towards XRP.
XRP Cüzdan Sayısı
Aiding this rise is the investment giant WisdomTree, which manages assets worth $100 billion. WisdomTree has recommended XRP as a viable investment asset alongside Bitcoin (BTC) for portfolio diversification. The firm believes XRP’s resilience to market cycles makes it a stabilizing factor for portfolios. Such endorsements indicate a growing seriousness towards the altcoin among institutional investors.
Binance Data Shows Strong Buying Indications
According to Binance futures data, XRP’s open interest is once again on the rise. Previously, it had fallen from $1.5 billion to $530 million, but it is now showing signs of recovery. As per CryptoQuant’s FundingVest, alongside the increase in open interest, the number of investors taking positions in XRP is growing, though buyers remain dominant. This suggests that selling pressure is being absorbed and the altcoin is gearing up for a potential new surge.
Funding rates reaching a neutral zone also indicate price stability. Coinglass data shows a recent liquidation of $6.86 million, split between long and short positions. Despite these sales, the price has not retracted, indicating the rally’s underlying support.
Can XRP Achieve $6?
Renowned technical analyst MackAttackXRP highlights a bullish pennant formation on the weekly chart, expressing optimistic views on the price trajectory. Should this pattern break upwards, XRP is expected to reach $3.40 and subsequently $3.60. Over the longer term, technical analysis suggests potential price levels between $5 and $6.
Currently trading around $2.57, XRP has risen by 4% in the past 24 hours. Maintaining this upward momentum may lead to testing the psychological resistance of $3 by the weekend. Trading volume and user growth emerge as strong driving forces behind the price increase.