The XRP price has shown a strong increase over the past few days. Many investors seem to have regained confidence in this altcoin. This has increased activity on the network and demand for XRP. Does this mean that the Ripple price could start to rise?
More active addresses on the XRP network
In March, there were an average of 363,000 active addresses per day on the XRP network. That is a clear increase compared to January and February. This growth shows that more and more people are using or buying XRP.
An important technical indicator, the Chaikin Money Flow (CMF), confirms this trend. In February we saw an outflow of capital from XRP, but in March this reversed. This means that investors are once again pumping money into XRP, which indicates increasing confidence in the market. Despite volatility in the broader crypto market, XRP continues to perform strongly.
Major resistance at $2.56
The XRP rate is currently at $2.41, which is an increase of 22% in ten days. The next major threshold is at $2.56. This resistance level has proven difficult to break through in the past.
If the rate rises above this point and turns $2.56 into a support zone, a further rise to $2.95 becomes increasingly likely. If buying pressure and trading volume increase, $3.00 is within reach.
If XRP fails to break through the resistance of $2.56, a drop to $2.27 could follow. If this level does not hold, $2.14 will be the next support level. In that case, the current upward trend will be disrupted.
Conclusion
The rising XRP price, increased network activity and capital inflow show that investors are regaining confidence. As long as the XRP price remains above important support levels, an upward movement towards $3.00 is realistic. However, a rejection at $2.56 could trigger a correction.
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