- XRP’s head and shoulder model is at a critical level, testing the support and resistance of the keys.
- The increase in daily active addresses contrasts with the drop in the number of transactions, signaling a mixed feeling on the market.
Xrp Tested a critical level in its price action, trading at $ 2.26 at the time of the press and reflecting a decrease of 3.26% when writing the editorial’s time.
The price was approaching the neckline of a head and shoulder model, which has investors on board. The left shoulder formed at the end of 2024, the head reaching its peak in December.
If XRP can avoid closing under the neckline and rising above the right shoulder, this could invalidate the lower motif. Therefore, this could lead to an bullish escape, perhaps pushing the price to $ 5.
Source: tradingView
However, if XRP does not break resistance, the lowering perspectives could prevail.
XRP has critical levels to monitor the action of potential prices. The immediate level of support was $ 2.02, which was held strong in recent weeks. If XRP falls below this support, it can point out later.
On the other hand, resistance nearly $ 2.95 is an important barrier for the price of XRP. If the price decreases above this level, a solid increased decision could follow.
Consequently, the market will probably react strongly around these key levels, determining the next movement for XRP.
Are the daily active addresses increasing a positive sign?
XRP experienced a significant increase in daily active addresses, reaching more than 206K on March 9, 2025. This increase in activity signals an increase in engagement with the network, which is often considered a positive sign for adoption.
Higher daily active addresses generally suggest more interest in cryptocurrency. Consequently, this could support a bullish perspective for XRP.
However, the global feeling of the market will always play an important role in determining the price movement.
Source: Santiment
What does the drop in the number of transactions mean?
Despite the increase in daily active addresses, the number of XRP transactions has dropped. The latest data shows a drop to 604K transactions, which suggests that fewer users engage with the network.
This drop in the volume of transactions may indicate weakening momentum. Consequently, he could temper upward expectations in the short term.
Consequently, this trend suggests prudence, because a lower transaction activity could point out less interest on the market.
Source: Santiment
The MVRV report indicates …
The MVRV (Z score) report for XRP fell slightly at 2.92, which suggests that the market cools after recent gains.
Although the ratio remains positive, the slight decrease may indicate that the XRP approaches over -expression conditions.
However, the decline is not substantial enough to raise immediate concerns. Consequently, although the MVRV report indicates a potential slowdown, it does not yet suggest a correction of significant prices.
Source: Santiment
XRP is more likely to deal with a downward continuation at the moment. Despite the increase in daily active addresses, the drop in the number of transactions and a slight drop in the MVRV ratio point to weaken the momentum.
The head and shoulder motif also indicates a drop-in potential if XRP fails to break over the keys to resistance levels.
Consequently, the action of current prices suggests that XRP has difficulty maintaining an increase dynamic, making a downward continuation the more likely result.
