TL;DR
- Active XRP addresses have exploded in the past week, signaling new bullish momentum for the asset’s price.
- Analysts remain optimistic, with some predicting a parabolic move above $27. However, that would require the market cap to jump to the unrealistic $1.5 trillion.
The Substantial Increase
Ripple’s XRP has witnessed enhanced volatility in the last week, with its price briefly plunging below $2 towards the end of February and reaching a local top of over $3 at the start of March. Currently, the asset is valued around $2.50, representing a 10% jump on a seven-day scale.
Indicators suggest that a further upward movement may be on the horizon. According to analyst Ali Martinez, the number of active XRP addresses skyrocketed by 620% over the past week, increasing from fewer than 75,000 to over 460,000. This significant resurgence points to increased network activity, growing adoption, and greater on-chain utility for Ripple’s native token.
Whale activity has also been noteworthy. Earlier this month, Martinez revealed that large investors acquired more than 270 million XRP in just 48 hours. Such accumulation reduces the available tokens in the market, possibly leading to a price rally, assuming demand remains stable.
The actions of these whales are being closely monitored by smaller investors, who may choose to follow suit and inject fresh capital into the ecosystem.
XRP’s Next Possible Targets
Many market observers believe that XRP is gearing up for a significant bull run. Analyst EGRAG CRYPTO has recently outlined key reasons why XRP could be poised for its next “big leap.” Factors include a retest of “the bull market support band” and a period of “noise consolidation” within the $2-$3.40 range.
An insightful observation made by the analyst compared current patterns to 2017’s market behavior, suggesting that XRP could replicate a classic Fibonacci extension move. This raises the speculative possibility of a price explosion above $27.
However, it’s essential to highlight that such a valuation would require the coin’s market cap to soar to nearly $1.5 trillion. With the total capitalization of the entire crypto sector hovering around $3 trillion, this forecast may seem implausible. EGRAG CRYPTO addressed these concerns by stating,
“Now, I already hear the skeptics yelling, ‘But what about Market Cap?!’ Here’s my response: Shut the FUD up. Market cap is a flawed measurement when it comes to real utility-driven assets.”
The post This Ripple Metric Explodes by Over 600% in a Week: XRP Price Pump Incoming? appeared first on CryptoPotato.
