- The number of active addresses on the XRP Ledger has soared by 67.5% in one day, according to reports.
- Alongside this jump in active addresses, Martinez also pointed to an inverse head and shoulders, which is typically seen as a pre-breakout reversal signal.
- This week, Coinbase Derivatives rolled out CFTC-approved XRP futures contracts, officially bringing the asset into the regulated derivatives arena.
Ripple’s XRP is making headlines again, this time unrelated to its parent company’s legal troubles with the SEC. Instead, XRP has seen an encouraging uptick in a very important metric: active addresses.
Despite the token still trading underneath the $2.1 price level and facing resistance near $2.22, this surge in on-chain activity and whale accumulation has brought in some optimism among analysts. Here’s a breakdown of what’s happening and why some experts believe that XRP could be setting up for a rebound.
The Spike in Network Activity
According to a recent update from analyst Ali Martinez, the number of active addresses on the XRP Ledger surged by 67.5% in just one day. This metric climbed from around 27,352 to over 40,000 after spending weeks in a decline, where network activity dropped by nearly 50% in a month.
Such a sharp increase in usage (especially during a weekend with low trading volumes) shows that interest in XRP could be returning. While the price hasn’t responded immediately to this development, this kind of growth often comes right before massive price surges.
Technical Indicators Point Toward a Breakout
Alongside this jump in active addresses, Martinez also pointed to an inverse head and shoulders pattern forming on XRP’s price chart. This pattern is typically seen as a pre-breakout reversal signal and could be massive for XRP bulls. If this pattern plays out, XRP could rally upwards toward $2.70 in a 30% increase from current price levels, as outlined by another analyst, The Crypto Titan in a recent tweet.
Another technical signal in support of this incoming breakout is the squeeze on the Bollinger bands, which indicates that XRP might be gearing up for a major price move. Considering the other bullish signals, many believe that the odds are in favor of an upward breakout.
Coinbase XRP Derivatives Go Live
In other news, Coinbase Derivatives recently launched CFTC-regulated XRP futures contracts this week. These new products are expected to offer more investors a cheaper and easier way to gain exposure to XRP. There are at the moment 2 types of contracts: a nano contract representing 500 XRP and a standard contract covering 10k XRP.
Both of these will be settled in U.S. dollars and benchmarked to the MarketVector Coinbase XRP Index. Interestingly, this launch comes after similar ones from Solana and Hedera earlier this year. The move could also open the door for more institutional trading activity in the XRP market, especially as investment vehicles like XRP-linked ETPs from Bitwise, 21Shares, and Franklin Templeton are waiting for approval.
In addition to this, the SEC and Ripple both filed a joint motion to pause the case earlier this month, based on an “agreement-in-principle” to settle. This means that the case has a good chance of being settled within 60 days. Overall, XRP needs a break past $2.22 with strong volume to build toward the $3.00 mark.
