- XRP price has gained by nearly 10% in the past week, driven by growing demand, a spectacular increase in new addresses, and weakening selling pressure by long-term holders.
- A sharp decline in XRP’s liveliness metric signifies growing investor optimism and improved holding trends.
- Various indicators point to the possibility that XRP can break through the current price level and move toward the $2.50 mark.
XRP price has continued to record gains following the renewed investor confidence in the broader crypto market. At the time of writing, this altcoin trades at $2.33.
With signs of improvement in the broader crypto market, traders have displayed renewed interest in XRP, while its long-term holders (LTHs) have reduced their selling actions. The LTHs are wallets that have held the coin for at least 155 days.
Rising demand is boosting XRP price
The increase in the number of new addresses is another factor that has boosted the recent rise in XRP’s price. On-chain data shows that these new addresses have now hit 3,677 in the last fourteen days.
New addresses. Source: Glassnode
One of the signs of fresh fund inflows and increased market activity related to an asset is the rise in the number of new addresses created to trade it. These traders help strengthen the XRP price rally and boost its price stability.
In addition, the data showed that XRP LTHs have not sold their tokens in the last seven days. The decrease in the XRP liveliness is proof of this change in selling activity.
At the moment, this liveliness score is 0.81, a score not seen since December 1, 2024. This type of drop in liveliness suggests a behavior shift among long-term holders.
It proves that they prefer to hold on to their coins instead of selling or transferring them. Their actions result in drop in selling pressure on the altcoin.
It is also a proof of investor confidence in XRP and suggests the continuation of a price uptrend for this coin.
Liveliness metric. Source: Glassnode
Could $2.50 be next for XRP?
The daily chart analysis shows a steady rise in XRP’s relative strength index (RSI), which confirms the increasing buying pressure as stated earlier. Currently, this momentum indicator is at 61.45.
The MACD line is also above the signal line, which is another confirmation of the coin’s bullish trend. In addition, the MACD histogram is displaying green bars, suggesting that the bullish momentum is gaining more strength.
If this buying pressure is maintained, the XRP price breaks above the $2.35 level (its next resistance), it could be on its way to trading at $2.5.
Source: TradingView