XRP’s recent price surge has brought the altcoin to within 17% of its all-time high (ATH) of $3.40, a feat that seemed out of reach just two weeks ago.
The rally has been fueled by significant bullish momentum, with a key cohort driving the surge forward.
XRP Attracts New Buyers
The recent surge in XRP’s price can be attributed to the influx of new addresses, which have contributed to a 124% increase in daily addresses since the start of this month. The daily average has risen from 3,600 to 8,100, reflecting growing investor interest and market optimism.
This influx has been a major factor in driving the altcoin higher, despite broader market uncertainty. As these new addresses pour money into XRP, the altcoin has shown resilience against negative market cues.
The continuous growth of new addresses is an encouraging sign for XRP’s market outlook. These new holders are driving up the price and also helping sustain the bullish trend.
Looking at technical indicators, the RSI (Relative Strength Index) is currently in overbought territory, crossing the 70.0 threshold. This indicates that XRP may be in the midst of an extended rally, similar to previous instances where the price soared into overbought conditions.
In November 2024, XRP saw a massive 387% rally before experiencing a reversal. While another extreme rally is unlikely, the current conditions indicate that XRP may still have some room to grow, especially with the continued support of the new addresses.
The overbought condition, combined with the influx of new holders, suggests that the rally is likely to continue for the time being. If the market remains favorable, XRP could sustain its upward momentum and potentially form a new ATH in the coming weeks.
XRP Price Faces Resistance
XRP’s price is currently sitting at $2.89, just under the $3.00 resistance level. This marks a 4-month high and positions the altcoin close to its ATH of $3.40.
The recent surge, driven by the influx of new addresses, has pushed XRP closer to breaking this critical resistance. XRP stands 17% away from its ATH, and if the current momentum continues, it is likely to surpass $3.00. Once $3.00 is secured as support, XRP could continue its rise, potentially reaching $3.40 or higher and marking a new ATH for the cryptocurrency.
However, if profit-taking sets in and investors begin to sell their holdings, XRP could face a reversal. A significant sell-off could see the price drop to $2.65, invalidating the bullish thesis.
Disclaimer
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