After surging past key price levels, XRP, one of the leading cryptocurrency assets by market cap, is now entering the market spotlight. A lot of new data is starting to show that this sudden move is not by coincidence, pointing to growing strength underneath the surface.
Behind The XRP’s Price Breakout Above $1.50
With the market slowly gaining bullish traction, the price of XRP experienced a sudden bounce, bringing it above the $1.50 mark. However, the latest move above the key level is increasingly being viewed by analysts as more than just a short-term bounce.
Xaif Crypto shared on the X platform that this breakout was not random. It appears the breakout has been supported by improved underlying liquidity, a stronger market structure, and persistent buyer demand. The price movement shows an accumulation of underlying momentum that had been building over time rather than a sporadic spike.
Following an analysis of the XRP Multi Exchange Open Interest Delta, the expert has disclosed a massive buildup of capital on cryptocurrency exchanges. According to Xaif Crypto, there are two big positions built that have happened quietly prior to the movement of $16 million on March 13, and $18 million on the 16th.
As seen in the chart, the development is unfolding on Binance, the largest centralized trading platform in the world, and traders were loading up despite the price being below the $1.50 mark. When the breakout above the level occurred, shorts that were overleveraged were being closed by force, pushing the price of XRP even higher.
Non-Empty Wallets And Active Addresses Are On The Rise Again
Behind the latest breakout is the growing interest and demand for the leading altcoin and the XRP Ledger (XRPL). With this, the breakout is starting to appear like a deliberate change in trend, which, if present circumstances persist, may indicate a longer-term move.
Data from Santiment, a popular on-chain data analytics platform, shows that fresh players are flooding the Ledger as the number of wallets sees sharp growth, reaching new highs. After this wave of new investors, the number of wallet addresses, particularly non-empty wallets, on the Ledger has now reached a staggering 7.7 million.
It is worth noting that this is the first time the Ledger has seen this level of participation in its 13+ year history, as its usage continues to grow. While the number of non-empty wallets has spiked, XRP’s active addresses have simultaneously increased. Santiment highlighted that Monday closed with a 5-week high of 46,767 active addresses, suggesting a sharp rise in the user base.
This surge in activity, which serves as an early sign of renewed market engagement, usually hints at growing interest from retail and institutional investors, who are confident about the future prospects of the token. As more wallets interact on-chain than in recent weeks, the altcoin’s price recorded an upswing of over 14% in a period of 48 hours, pushing it to breach the $1.60 level.
Featured image from Freepik, chart from Tradingview.com
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