- Both crowd sentiment and smart money sentiment underscored market optimism.
- A higher number of transactions and active addresses, combined with a decline in foreign exchange reserves, supported XRP’s bullish chances.
XRP market sentiment, at press time, predicted a strong bullish outlookwith a positive crowd sentiment of 1.77 and a smart money sentiment of 0.76. This alignment between retail and institutional investors could be a sign of growing confidence at all levels.
At the time of writing, XRP was trading at $0.514, marking a slight decline of 0.14% over the past 24 hours. However, overall market sentiment indicates some potential for bullish momentum. Hence the question: could this dual bullish sentiment be the spark for XRP’s next rally?
Price Action Overview – Can XRP Break Out of Range?
Looking at its recent price movements, the token appears to be consolidating in a tight range, hovering between $0.51 and $0.52. In fact, Bollinger Bands data showed a contraction, suggesting reduced volatility in the near term.
Nonetheless, the relative strength index (RSI) was near 45.81, indicating that XRP may be approaching oversold levels. Therefore, this setup could pave the way for a breakout if buying pressure increases in line with the prevailing positive sentiment.
Source: TradingView
XRP Active Addresses Increase – Bullish Network Signal?
Additionally, network strength also appears to be gaining ground. The number of active addresses increased by 0.92% in the last 24 hours, totaling 19,191,000 unique addresses. This increase in active addresses can be interpreted as a sign of increased user engagement on the XRP ledger.
In general, more active addresses indicate increasing interest from users, often a precursor to greater trading volume.
Therefore, the increase in active addresses is a sign of growing demand – a development that aligns well with the broader bullish sentiment surrounding XRP.
Source: CryptoQuant
XRP Transaction Count Growth – Higher Network Utility
The increase in the number of transactions has further highlighted the growing utility of XRP.
The total number of transactions increased by 0.98% in the last 24 hours, reaching 1.4089 million. An increase in transaction activity on the network often leads to stronger demand for the token – a positive signal for price stability and potential growth.
Source: CryptoQuant
Foreign exchange reserves fall – Lower selling pressure ahead?
Another positive development, foreign exchange reserves decreased by 0.59% over the last 24 hours. Typically, a decline in foreign exchange reserves implies lower potential selling pressure, as fewer tokens are held on exchanges for immediate sale.
Investors removing XRP from exchanges may indicate their confidence in the asset’s long-term prospects. Therefore, this reduction in reserves complements the bullish market sentiment, suggesting that selling pressure may remain limited in the near term.
Source: CryptoQuant
Read Ripple (XRP) Price Prediction 2024-25
In conclusion, the indicators collectively pointed to a solid foundation for potential upward movement. Public and smart money sentiment was bullish, while on-chain metrics such as active addresses and transaction counts appeared to show positive growth.
