Hype related to blockchain giant, Ripple faded and conversations surrounding the fourth-largest cryptocurrency by market cap, XRP declined in tandem with its dull price action over the period of the last four months.
The cryptocurrency, however, flipped bullish in response to the ongoing bull run spurred by Bitcoin. Over the weekend, XRP rallied by over 65%. Following the much-awaited bullish stint and as XRP touched a whopping 16-month high, daily active addresses all surged substantially.
According to the crypto analytic platform, Santiment, the number of unique addresses transacting on the XRP network in a single day noted a massive spike to 24,408. Surging DAA pointed an optimistic sentiment around the coin amidst the bull run.
XRP’s impressive price performance over the last few days accompanied by a surge in addresses with large holdings is yet another bullish development for the ecosystem. This news comes a week after several renowned crypto analysts edged with a bullish stance on XRP. Over the past six months, strong growth in XRP whales was noted, meaning that this group of investors was buying up the cryptocurrency which trading close to its crucial support level.
$XRP (USD)
They laughed at me when I shared this trade.
But who's laughing now?
I am, I'm laughing because it's $XRP.
Profitable though.
I'm long with leverage on Phemex.https://t.co/HIoaFKaTBP pic.twitter.com/DTOLzBHPFv
— The Wolf Of All Streets (@scottmelker) November 15, 2020
Has XRP Established its Top?
Does this mean that a local top has formed and the price would likely go down? Maybe not yet. Currently, the number of whales that invested in XRP was still hovering close to its new all-time high. The coin broke an important resistance level of $0.33 and climbing all the way to the press time price of $0.434, a level that was last seen in the second week of July 2019.
To top that, Bitcoin does not appear to be slowing down anytime soon. Its technicals have been projecting bullish signals for quite some time now as it settled close to $18K. Despite a minor decline in terms of BTC-XRP correlation, the coefficient remained as high as 0.74. Hence, a positive breakout with respect to Bitcoin would eventually prompt a rise in XRP as well along with the rest of the altcoin market.
But why the hype now?
It is important to note that the XRP investors could be purchasing the crypto in anticipation of the Spark token airdrop the token holders will receive on the 12th of December. On this day, XRP holders will receive Spark tokens on a 1:1 basis according to the number of tokens they hold.
The airdrop also involves Flare, which happens to be a partner of Ripple. Flare is a network that integrates the Ethereum Virtual Machine [EVM] for the purpose of offering advanced smart contracts on the XRP network and is slated to distribute a total of 45 billion Spark tokens to XRP holders.