Cryptocurrency markets are known for their volatility and rapid price movements. XRP, despite being a popular altcoin, has struggled with price drops lately. The rally above the $0.50 level was not sustainable and XRP price dropped again.
However, some analysts think that XRP may experience an uptrend in the future by following its historical patterns. This analysisbased on daily active addresses of XRP. Active addresses represent the number of users interacting with a cryptocurrency.
The last three instances $XRP price jumped were preceded by a spike in the number of active #XRP addresses.
On-chain data from @santimentfeed has recorded a spike in network activity over the past few days. Could history repeat itself? pic.twitter.com/XoJAFsDuvo
NEWS CONTINUES BELOW— Ali (@ali_charts) June 26, 2023
Based on Santiment data, Ali Martinez, a well-known crypto charter, determined that XRP’s last three price spikes occurred shortly after a significant increase in the asset’s address activity.
Historical XRP Data
Analyzing the centiment chart confirms the analyst’s findings. Notably, XRP saw a huge spike in daily active addresses on January 6, 7, and 11. These observable increases in daily address activity preceded a massive spike in the value of XRP.
Also, the biggest increase in XRP this year, which took place in March, came after the significant increase in address activity. Following the astronomical increase in active addresses, XRP rose from $0.385 on March 21 to $0.571 on March 29.
XRP’s most recent notable rise in daily address activity occurred on May 29. XRP rallied once again, from $0.448 to $0.517 on June 13. This rally also coincided with the release of Hinman’s documents.
Does History Repeat Itself?
As the analyst pointed out, XRP has now experienced similar increases in address activity. In the last four days, the number of daily active addresses increased to 142 thousand on 23 June, 147 thousand on 24 June, 135 thousand on 25 June and 144 thousand on 26 June. This is the longest series of address activity this year, with over 130,000.
If XRP follows the historical pattern witnessed throughout this year, this latest spike in address activity could signal an impending price spike. Of course, past performance does not guarantee future performance. The cryptocurrencies market is complex and depends on many factors. However, analysis of on-chain data and historical patterns can help investors understand possible future trends.
You can follow the current price action here.
Source : the crypto basic