XRP price shows a massive influx of active wallets, should Investors be concerned?

Ripple’s active addresses have increased by nearly 6x on multiple sets of occasions throughout the summer.
Ripple price hovers just above a breached consolidative barrier, which is enticing traders to open a long positions.
Invalidation of the bearish view demands $0.48 holds as resistance.

XRP price is displaying optimistic technicals during the second trading week of August. Still, the odds of a Wall Street trap remain on the table.

XRP price could be a Wall Street trap

XRP price currently auctions at $0.38 as the bulls have successfully breached a consolidative trend line. The display is quite monumental as the descending barrier has played a significant role on the XRP price since April 2022. Traders witnessing the breach should be drawing up trading plans as the technicals present a promising future.

Still, some on-chain metrics do not necessarily correlate with the bullish price action. Santiment’s Active Wallet’s indicator shows concerning signals amids the current 33% bull run since the June 18 lows at $0.28.

On multiple occasions the indicator shows a significant influx of active wallets. This could be viewed as a contrarian bearish and merits reasonable doubt in the current Ripple uptrend. Perhaps Smart Money has been sneakishly placing sell limits while retail consume.

Santiment Active Wallet Indicator

Ripple price looks bullish in the short term and previous outlooks have already been issued identifying key levels for bullish traders. Nonetheless a Smart money trap is still at play. Bears looking to place a bet can use the $0.48 barrier as a definitive line in the sand. If the bears conquer the trend, a breach towards $0.24 could occur, resulting in a 35% decline from the current XRP price.

XRP/USDT 1-Day Chart

In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.