Key Takeaways
- The number of active XRP addresses has risen to a record high of above 1.15 million, tripling within one month.
- Analysts believe the XRP price could be poised for a rebound following the increase in addresses and transactions.
- The price of XRP has dropped to a low support level of $2.14
The price of XRP dropped by 17% to below $2 over the past week; still, onchain data reveals a three-fold increase in network activity, raising questions among enthusiasts about the underlying sentiment.
According to on-chain data from Glassnode, active XRP addresses tripled between February 21 and March 10. There were at least 543,000 active XRP addresses, up from 89,606 on February 21.
Trump’s Failure to Create a Crypto Reserve
While there was a slight dip afterward, the number of active XRP addresses resurged to 531,000 on March 7, and by March 10, there were still 370,000 active addresses beyond the previous level within the Ripple ecosystem. Meanwhile, XRP’s exchange outflows from Binance showed a notable decrease overall.
Some observers believe the reduced activity within the XRP ecosystem could be related to Donald Trump’s choice of signing an executive order to create a Strategic Bitcoin Reserve rather than the multi-crypto reserve he had hinted at earlier, which included XRP, among other altcoins. The expectation that the SEC would potentially drop its charges on the Ripple vs. XRP case could also have dampened investor expectations.
The community anticipates a Court Ruling on April 16
According to Glassnode data, the most excellent XRP outflow occurred on March 7, when over $465 million worth of the token left the Binance exchange. The disparity between price action and network activity has left many observers wondering what the market sentiment could be suggesting. Historically, the increased number of active XRP addresses has always signified enhanced user engagement, suggesting renewed demand for the token.
There’s increased enthusiasm within the XRP community following an announcement that the court will decide the long-drawn Ripple vs. SEC case on April 16, 2025. The regulatory agency contested the Programmatic Sales of XRP decision on January 15. However, following the resignation of former SEC boss Gary Gensler, the agency has dropped several lawsuits, leading to a belief that the Ripple case could also be dropped.
Conclusion
The strange combination of declining outflows and increased XRP address activity could signal hesitation among investors or reduced accumulation pressure, which could be interpreted as uncertainty about the anticipated price direction. Despite ongoing network participation, some analysts believe the current XRP price decline points to short-term speculation instead of a fundamental weakness. It remains to be seen whether the engagement will translate into a price recovery as the community anticipates good news on April 16.
Frequently Asked Questions (FAQs)
Why does the Ripple XRP keep dropping?
According to most experts, XRP is experiencing a potential price rally, but it’s mired in a lengthy legal battle with the SEC, which poses substantial regulatory risks.
What would be the effect of the SEC dropping the Ripple case?
Analysts believe dropping the appeal could drive XRP past its $3.55 all-time high, while prolonged legal uncertainty could push prices below $1.50.
What are the odds that the SEC will drop the Ripple case?
With the growing pro-crypto sentiment within the Trump administration and the SEC dropping cases against various crypto firms, the Ripple lawsuit is expected to be dropped on April 16, 2025.
