Skip to main content

Why is XRP price up today?

XRP's daily active address count has soared to its second-highest level in May, raising traders' anticipation for a price rally.

The price of XRP (XRP) rose 6% to $0.51 on May 30 as the market's attention turned toward the latest spike in XRP network activity.

XRP/USD hourly price chart. Source: TradingView

XRP's daily active addresses count near record high

The XRP network witnessed a sudden increase in the daily active addresses (DAA) — the number of unique addresses involved in XRP transactions daily.

For instance, on May 27, around 490,000 addresses interacted with the XRP network. That amounted to the second-largest address activity on the XRP blockchain, just three months after establishing the record DAA count of 880,000, according to data resource Santiment.

XRP DAA vs. daily price chart. Source: Santiment

Interestingly, the DAA surge to a record high in March preceded a 45% price rally. This fractal may have prompted traders to speculate on a similar upside move after the latest DAA count rise.

This is primarily because of how the market interprets the DAA indicator. It considers a rise in active addresses as bullish for the concerned token. Conversely, a drop in active addresses is considered bearish.

Nonetheless, history presents the DAA indicator as a flawed one. For instance, the spikes in XRP's DAA count between November 2021 and April 2022 coincides with the token's price decline, as shown in the chart below.

XRP DAA count throughout history. Source: Santiment

As a result, XRP remains at risk of declining, primarily because of an uncertain macroeconomic outlook that could hurt the crypto sector broadly.

XRP eyes a 20% decline in June

From a technical standpoint, XRP could drop in the coming weeks as the token retests its multi-month horizontal trendline resistance for a potential pullback.

XRP/USD weekly price chart. Source: TradingView

If a retreat occurs, XRP price may aim for its multi-month ascending trendline support as its primary downside target. That could theoretically take the price to around $0.40, down 20% from current price levels.

Related: Bitcoin reclaims $28K, and charts suggest ARB, XRP, EOS and AAVE could follow

Conversely, a breakout above the horizontal trendline resistance could trigger an ascending triangle reversal breakout, pushing XRP price toward $1, as illustrated below.

XRP/USD weekly price chart. Source: TradingView

A potential Ripple win in the ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC may prompt such a breakout move.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.



from https://ift.tt/H0Vq3K2
https://ift.tt/CLAf1Mx

Labels

Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl...
Post a Comment
Read more

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

FTX hacker reportedly transfers a portion of stolen funds to OKX after using Bitcoin mixer

On-chain activity suggests that the hacker has sent at least 225 BTC (4.5 million) to OKX so far. Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money.  A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hackers have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX so far.  1/ Myself and @bax1337 spent this past weekend looking into the FTX attacker’s deposits to ChipMixer. It appears they’ve likely been transferring a portion of the stolen FTX funds to OKX after withdrawing from CM So far we’ve accounted for at least $4.1m (255 BTC) sent to OKX pic.twitter.com/C46JZWtktn — ZachXBT (@zachxbt) November 29, 2022 According to ZachXBT, the FTX h...
Post a Comment
Read more