- XRP has seen a 3% price increase in early September, sparking bullish sentiment among analysts.
- Despite the positive outlook, declining active addresses raise questions about the sustainability of this rally.
After experiencing a significant decline in August, with Ripple [XRP] dropping to as low as $0.43 on 5th August, the asset seems to be charting a different course as September begins.
Over the past few days, XRP has shown signs of recovery, currently trading at $0.5668, marking a 3% increase in the past 24 hours. This uptick in price offers some optimism for investors, especially after the bearish trend that marked the end of August.
Massive bull run on the horizon?
Several crypto analysts have shared their perspectives on XRP’s recent price action, sparking discussions about the asset’s potential future movements.
Notably, Javon Marks, a well-known crypto analyst, highlighted the similarities between XRP’s current price movements and the patterns observed before its massive 57,000% surge in 2017-2018.
Marks suggested that XRP could be on the brink of another significant upswing, one that has not been seen in the last six to seven years.
Source: Javon Marks on X
Another analyst, known by the pseudonym ‘Dark Defender,’ also shared an optimistic view on XRP. In his recent analysis, he pointed out that XRP has been consolidating within a tight range between $0.6649 and $0.3917 for an extended period.
Dark Defender emphasized the importance of the $0.6649 level, which is positioned above the weekly Ichimoku cloud—a key technical indicator in predicting future price movements.
Source: Dark Defender on X
According to him, breaking through this level could signal the beginning of a significant bull run for XRP, potentially pushing the asset towards the Fibonacci level of $18.22 in Wave 3 of the Elliott Wave Theory.
Fundamental outlook on XRP
While the technical outlook appears promising, the fundamental analysis of XRP presents a more complex picture. Data from Santiment shows a notable decline in XRP’s active addresses over the past few weeks.
Source: Santiment
After peaking at over 105,000 on August 11, the number of active addresses has dropped to approximately 80,200 as of today. This decrease in active addresses could indicate a reduction in user engagement or trading activity, which might exert downward pressure on XRP’s price in the near term.
On the other hand, XRP’s open interest—a measure of the total number of outstanding derivative contracts—has seen a slight increase, rising by 2.50% to $615.46 million.
Source: Coinglass
Read Ripple’s [XRP] Price Prediction 2024-25
However, the open interest volume, which reflects the total trading volume in these contracts, has declined by 12.52% to $721.51 million.
The rise in open interest coupled with a decrease in trading volume may suggest that while more contracts are being opened, the market participants might be cautious, possibly anticipating volatility or a significant price movement in the near future.