XRP consolidates in bullish trend as ledger activity normalizes
- XRP remains elevated near $1.45 after a sharp spike from the weekly low of $1.31.
- XRP Ledger activity has normalized after a sharp August spike pushed daily active addresses near 930,000.
- XRP retains a neutral-to-bullish technical outlook, supported by the RSI and uptrending moving averages.
Ripple (XRP) holds onto a bullish bias, trading near $1.45 at the time of writing on Friday. The remittance token is taking a breather after breaking out from $1.31 to highs at $1.48 the day before, underscoring the return of bulls into the back against the backdrop of a drop from August’s peak of $1.70.
The path of least resistance remains primarily upward, backed by a strengthening technical structure as major moving averages trail the spot price as it rises.
XRP on-chain activity moderates
On-chain activity on the XRP Ledger (XRPL) has moderated since the surge to 930,000 active addresses in August. According to Santiment’s data, the number of wallets interacting with the protocol by sending or receiving value has normalized to about 26,000.
The August surge was an outlier, fueled by increased user participation as prices broadly rose across the crypto market. XRP rallied to $1.70, aligning with positive market sentiment. Since the spot price remains relatively elevated, a rise in on-chain activity could boost the token’s short- to medium-term outlook.
Meanwhile, XRP spot Exchange-Traded Funds (ETFs) notched nearly $19 million in inflows through Thursday, suggesting reduced but steady risk-on sentiment. Last week, cumulative inflows averaged $110 million, the highest level since early December.
The Crypto Fear & Greed Index remains in the Greed territory at 74 on Friday, increasing from 65 the previous day. This uptick aligns with growing appetite for risk assets, as highlighted by US-listed spot ETFs.
Technical analysis: XRP bulls tighten grip
XRP trades at $1.44, while holding a clear bullish bias as price sits well above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), with the long-term EMA at $1.36 underpinning the advance.
Momentum remains constructive, with the Relative Strength Index (RSI) near 66, suggesting strong but not yet overbought conditions, while the slightly negative Moving Average Convergence Divergence (MACD) reading hints at a mild pause rather than a full-fledged reversal within the broader uptrend.
On the downside, immediate support is seen at the psychological $1.40 level, followed by the 200-day EMA around $1.36, where a deeper pullback could test the durability of the latest breakout. Below that, the 50-day and 100-day EMAs clustered around $1.23 offer a secondary demand zone that would likely attract dip-buying interest if reached, keeping the medium-term structure constructive as long as price holds above these dynamic floors.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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
