The cryptocurrency market has been on an impressive streak this year as it nearly doubled its valuation. But this was not the case with XRP, which is the third-largest market cap cryptocurrency. And despite the fact that other coins have managed to push closer to the levels last seen during the 2018 bull run, XRP was still down by over 91% from its ATH of $3.50 as recorded on 4th January of the same year to its current price at $0.283.
Will XRP’s multi-year downtrend finally end?
But all hope is not lost. XRP made a higher low in the last week of June, for the first time since early 2018. To top that, XRP’s active address output has continued to remain high despite a poor performance on its price action. This was noted by the crypto analytic platform, Santiment, which tweeted that
“Ripple holders can take solace in it being one of the few alts with a DAA bullish divergences we’ve identified.”
On 24 August, the number of XRP ‘s Daily Active Addresses [DAA] surged to a seven-day high of 9,499, despite the fact that the coin had dropped by more than 9% over the past week. Compared to the February numbers, the DAA was still low.
A little flashback: The figure reached an ATH of nearly 71,000 daily active addresses during this bullish phase when XRP was being traded at $0.337 as compared to its previous high of 50,583 active wallets when the coin was valued close $3.1
Coming back to the present scenario, the increase in DAA figure coincided with XRP’s price hinting a potential upside break in the coming days.
A symmetrical triangle pattern took shape on the short-term XRP price chart. While this was indicative of a potential price breakout on either side, in insight it was the placement of the daily moving averages that provided more clarity.
The 50 DMA [Pink] underwent a golden cross with the 200 DMA [Purple] in the first week of August. The rising gauge between the two DMAs indicated a potential bullish uprising for the coin’s price as both the moving averages continued to support the price candles from big losses.
Meanwhile, the RSI confirmed a bullish divergence as it formed higher lows while the price formed lower low, thus, suggesting a consistent strengthening momentum.
There is also a sense of optimism in the market as the Crypto Fear and Greed Index for Bitcoin and other large cryptocurrencies were found to hovering in “Greed”.
Trailing far behind the top two
While the growth of XRP has been significant, when compared to Bitcoin and Ethereum, however, the numbers are quite small. BTC boasted DAA of nearly 1 million while that of ETH stood a little over 500,000.
The reason for this could be the use of “destination tag” feature by XRP ledger [XRPL]. According to developer Mark Hamilton, this feature enables allows for a single XRP address to have many subaddresses. This essentially implies that the total number of active addresses is undercounted.