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- XRP makes a U-turn as it flips to a bullish sentiment with a significant surge in active wallet addresses while the reserve on Binance sharply drops.
- Even so, some analysts believe that the asset could still make a further drop to $1 due to the formation of a head-and-shoulders pattern.
XRP has managed to overturn its recent downtrend, recording positive gains across all the notable trading periods. According to our market data, the asset has surged by 5.5% in the last 24 hours, 9% in the last seven days, 3.8% in the last 30 days, 3.2% in the last 90 days, and 6.8% from year to date. Its market cap has made a quick rebound to $143 billion as $9.4 billion changes hands at press time.
Looking into its on-chain activities, we found that the current trend aligns with investors’ confidence as Binance’s XRP reserves drastically drop. Fascinatingly, this appears to be a sharp turn from the recent increase of Binance’s XRP reserve from 2.72 billion to 2.90 billion, as outlined in our recent blog post.
While this scenario is usually linked to the movement of assets to cold storage, it is historically accompanied by a tightening supply and subsequent price surges.
Confirming this trend, analyst Ali Martinez has also shared data that shows that XRP active addresses have surged by a whopping 620% in just a week. Specifically, the numbers increased from 74,589 to 462,650.
Meanwhile, the XRP Ledger has also recorded a 24% surge in the number of accounts since early 2024. According to data, the network has 6.2 million accounts, a fair surge from the previous 5 million accounts.
Bullish and Bearish Comments on XRP
Joining the XRP discussion, a popular finance author called Linda Jones has urged investors to make a move while the asset is undergoing a major correction. It is important to note that XRP dropped from $2.99 to $2.20 between March 3 and March 4. According to analyst Ali Martinez, the asset could extend its correction to $1 in a 58% fall from the current level.
Per his observation, XRP is forming a head-and-shoulders pattern on its daily timeframe with $2 serving as the neckline and a major support. Similarly, an analyst identified as Jesse Colombo has also disclosed that XRP is forming the same pattern, indicating that a fall below $2 could be fatal. However, he did not specify how low the asset could go.
Earlier, an analyst called IncomeSharks predicted that XRP could stage a dramatic fall to hit $0.6. His reason was that the asset had been following a “pump and dump” pattern. Regardless, other analysts remain optimistic about the future price of XRP.
According to analyst Captain Faibik, the asset is forming a bullish pennant that could position the price at $5. This also aligns with a recent prediction by analyst Worlds of Charts. As explained in our last analysis, Worlds of Charts believes that a breakout from a descending trendline could trigger buying pressure, which would send XRP to $5.
Another analyst called Egrad Crypto has also predicted that the asset could hit $27 this cycle. As mentioned in our previous news brief, XRP could repeat the 2017 move, which could likely send its market cap to at least $1 trillion.
