Ripple Active Addresses Surge: Is XRP Ready to Rally?

The recent surge in active XRP addresses has sparked optimism that Ripple might be gearing up for a major bullish breakout. This key metric, closely watched by investors and analysts alike, could be signaling an imminent rally for XRP, Ripple’s native cryptocurrency.

According to data tracked by analysts, Ripple’s network activity has made an impressive comeback after a previous cooldown. Just days ago, the number of active XRP addresses had plummeted by roughly 50% over the course of a month. That downturn had cast shadows over XRP’s near-term price trajectory, suggesting waning interest in the network from its users. A decline of that magnitude typically points to stagnation in user engagement, which often precedes market underperformance.

But momentum has quickly shifted. On Sunday, blockchain expert Ali Martinez reported that the number of active XRP wallets spiked by 67.5% in a single day. This dramatic increase occurred in the absence of any major price action or significant spikes in trading volume, making the shift particularly noteworthy.

The data shows active XRP addresses jumping from 27,352 to 40,366. This robust rise in user activity, in such a brief window, often coincides with heightened investor interest and potential price breakouts.

Technical analysis further supports the bullish case for XRP. Martinez noted that the token may be forming an inverse head and shoulders formation — a classic technical pattern associated with trend reversals and upward momentum. If validated, this setup could catapult the price of XRP toward an ambitious target of $2.70.

Currently trading slightly below $2.10, such a move would represent a healthy 30% gain from the present support levels. For crypto traders, this type of formation indicates a potential reversal of a prior downtrend, suggesting that XRP’s recent lows might give way to a bullish uptrend.

In a follow-up analysis, Martinez reinforced his bullish outlook by pointing to a tightening Bollinger Band structure. This technical signal often precedes big price movements. When volatility compresses and price coils within a narrow range, it’s often the precursor to a sharp breakout — up or down. In XRP’s case, the additional metrics suggest the breakout could skew to the upside.

Beyond technicals, the activity spike may reflect deeper network fundamentals. Increased engagement across the Ripple ecosystem typically correlates with growing confidence in its blockchain utility. Whether due to new on-chain applications, network partnerships, or renewed investor sentiment, a rise in wallet activity is often a forward-looking indicator of price performance.

Traders will also be closely watching the support and resistance zones for XRP. Holding above the psychological $2.00 mark will be crucial for bulls. If XRP can sustain traction above this level while breaking past technical resistance thresholds, the rally toward $2.70 becomes a realistic scenario.

Moreover, XRP’s long-standing position within the larger crypto market gives it a unique profile. Even amidst legal headwinds and regulatory uncertainty in the past, the token has maintained strong community support and strategic usage globally. A renewed spike in on-chain activity could reestablish XRP as a leader in transactional crypto tokens.

While no indicator alone guarantees a price move, the combination of long-term technical formations, surging wallet activity, and narrowing volatility bands suggests XRP could be on the edge of significant price appreciation. As always, traders should monitor the market closely and exercise caution in these volatile conditions.

Related: Expert Advice: Sell XRP If You’re Confused

Lastly, the ongoing consolidation phase may finally be reaching its conclusion. If XRP breaks above its current resistance levels, it could usher in the next bullish chapter for Ripple’s native token.