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XRP Price on the Move: What's the Latest?
There's a buzz in the crypto market as the price of XRP has seen an uptick, a 6% increase to $0.51 on May 30. The primary focus of market observers seems to be on the recent boost in XRP network activity, potentially signaling a price rally on the horizon.
Spike in XRP's Daily Active Addresses: An Indicator of Market Activity?
The number of unique addresses participating in XRP transactions daily, known as daily active addresses (DAA), has experienced an unexpected rise in the XRP network. Notably, approximately 490,000 addresses interacted with the XRP network on May 27. This marked the second-highest level of address activity in the XRP blockchain's history, only three months after achieving the record DAA count of 880,000, as per data from Santiment.
This increase in DAA led many to recall a 45% price rally that followed a record DAA high in March. Traders might therefore anticipate a similar price boost after the recent uptick in DAA.
The DAA indicator is often viewed as a gauge of market sentiment, with an increase in active addresses perceived as bullish for the respective cryptocurrency. Conversely, a decline in active addresses can be seen as bearish.
However, historical data has shown this indicator to be imperfect. For example, the rise in XRP's DAA count between November 2021 and April 2022 coincided with a dip in XRP's price. As such, XRP faces the possibility of a price decrease, primarily due to broader market uncertainties that could potentially affect the entire crypto sector.
Technical Analysis: Possible 20% Decline for XRP in June
Looking at XRP from a technical perspective, there's a chance for a price dip in the upcoming weeks. This prediction is based on the likelihood of XRP retesting its multi-month horizontal resistance line, potentially leading to a pullback.
Should a retreat transpire, XRP's price may seek out its multi-month ascending support line as its first target. This could result in a drop to approximately $0.40, signifying a 20% decrease from the current price.
Contrastingly, breaking above the horizontal resistance line could activate an ascending triangle pattern reversal, propelling XRP's price toward $1.
Such a breakout move might be influenced by a potential victory for Ripple in the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
