Ripple Price Analysis: XRP holds near support amid growing on-chain activity
- XRP falters within a narrow range, with demand at $1.00 and resistance at $1.10.
- Wallets with 100 million to 1 billion XRP increase their risk exposure, holding 11.98% of the total supply.
- The XRP Ledger sees an increase in on-chain participation as daily active addresses have surged past 37,000 so far.
Ripple (XRP) declines for a second day in a row, trading around $1.07 at the time of writing on Tuesday. The remittance token has continued to sustain a bearish outlook, aligning with the broader cryptocurrency market.
XRP Ledger activity gains momentum
Large volume holders on the XRP Ledger (XRPL) are showing interest in the token, as evidenced by the number of wallets with between 100 million and 1 billion XRP, which sharply increased to account for 11.98% of the total supply on Tuesday, up from 10.66% last Saturday. If whales keep increasing their risk exposure, higher demand will absorb the selling pressure, allowing for a sustained recovery.
The number of active users on the XRPL is also expanding. According to Santiment, active addresses interacting with the protocol by either sending or receiving stood at nearly 17,000 on Tuesday, after tagging approximately 37,000 the day before. Looking back, active participation had dropped to 20,000 on July 20, underscoring growing interest in XRP as the price nears the $1.00 critical support level.
Technical Analysis: XRP sellers retain control
XRP trades at $1.07, keeping a bearish near-term bias as it remains below the 50-day Exponential Moving Average (EMA) at $1.12 and the Bollinger middle band at $1.09. The 100-day EMA at $1.20 and the 200-day EMA at $1.39 stay well above price, reinforcing a broader downside skew.
The Moving Average Convergence Divergence (MACD) indicator holds marginally below the zero line on the daily chart, and the Relative Strength Index (RSI) at 45 suggests subdued, slightly negative momentum rather than an oversold condition.
On the topside, initial resistance emerges at the Bollinger middle band near $1.09, followed by the 50-day EMA at $1.12 and the Bollinger upper band at $1.14, with higher hurdles at the 100-day EMA at $1.20 and the 200-day EMA at $1.39. On the downside, the first notable support is aligned with the Bollinger lower band around $1.05, where a break would open the door to further weakness in the pair.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
