- Ripple blockchain sees 5.02 million non-zero addresses.
- Price likely to move as technical indicators too point towards a rally.
- Strong fundamentals on XRP’s side.
- Legal award proves XRP not a security.
XRP has pretty much stayed at the same spot (near $0.55) for a year now even when Bitcoin nearly tripled. However, that might soon change as the blockchain and token continues to see mass adoption.
In a recent update, we found that the number of non-zero wallets in the Ripple blockchain has crossed 5 million for the first time ever.
Will it create a price rally? Will XRP move from what seems to be its forever home?
Today, on January 27, 2024, Santiment broke a news on X that the Ripple blockchain had just crossed 5.02 million wallets for non-zero blockchain addresses. The value has tripled since May 09, 2019. The blockchain analytics firm, Santiment, is one of the most accurate data sources for on-chain data.
XRP is one of the three cryptocurrencies with a regulatory clarity that they are not securities. The other two being Bitcoin and Ethereum.
#Note: The number of non-zero wallets exceeded 5 million which is lower than the total no of wallets in Ripple’s blockchain. Also for such on-chain reports the meaning of a wallet and a blockchain address is the same.
Earlier XRP used to be the fourth largest non-stablecoin cryptocurrency. However, Solana overtook XRP in Quarter-4 (Oct-Dec) of 2023 when its token SOL’s value and its on-chain TVL shot up by almost 5x.
Yet, the crypto is still the sixth largest one with a market cap of $28.8 billion. At its peak, it went till $0.88 when it won against the SEC.
Why XRP’s Growth is Long Due?
Despite having a very strong fundamental presence, XRP has still lagged at the same price for more than a year now. Whenever its price seems to go up, it ends back at the same levels near $0.55.
XRP has been a favorite of whales in 2023. Also, a big institutions, JP Morgan was reported purchasing about 7.5 million XRP in November 2023.
The price has long stayed at the current levels of $0.55. This was the level which XRP had since the crypto winter where Bitcoin fell till $15.6k. Since then Bitcoin had more than tripled reaching almost $49k on January 10, 2023.
Even on the percentage gain basis, Bitcoin has given nearly 82% returns as of today, January 10, 2023. However, XRP has barely 30.16% returns as of today.
Being one of the three cryptocurrencies with a solid regulatory clarity means a lot for XRP. It was declared not as a security by the US District Court of Southern District of New York.
Yet, its price has barely moved the needle. It rose for less than a day till $0.88 and then fell back.
Surprisingly, the entire crypto market rallied on this news and most of the cryptocurrencies have not returned back to their levels which were a year ago.
Highest Blockchain Utility
Perhaps the only non-Bitcoin, non-Ethereum blockchain that has some utility in the real world, out of Web3 is Ripple’s blockchain. This is because it has been utilized by several governmental and non-governmental agencies for usage.
Ripple was critical in digitizing Colombia’s land records. On-chain land records make it very easy to verify ownership and in sales and purchase of land.
The Ripple ODL is a cross-country funds transfer solution that uses the Ripple Blockchain.
When the stagnant price of XRP has defied logic of fundamental analysis, let us see what technical charts and indicators could show us.
If you carefully observe the bottom part of the daily charts where the RSI is present. You will notice that XRP’s RSI has just bounced back from the levels of 30 which seems to be the bare minimum for a bull market.
The subsequent reversal in price has already happened. The price has recently touched a low near $0.5 and has bounced back from those levels. This marks the reversal of a fall which has been there since first week of November 2023.
Such a big reversal could take the price of XRP higher than its 52-week high. However, there is an attached condition. The price of XRP has to break the resistance at $0.58. Once broken, it could rally till $0.65 without any break.
If you wish to trade based on these levels, we suggest putting a stoploss at $0.50 which acts as a support level for the near term. The strongest support levels for XRP seems to be present near $0.45. This can be seen in the charts above as a broad green band towards the bottom of the price chart just above RSI.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.