XRPUSDXRP has experienced a slip below the $2 threshold, reflecting a 17% drop over the preceding week. Nevertheless, on-chain data is bringing a surprising upswing in network activity to light, despite the bearish trend, sparking curiosity about the predominant market sentiment.
As the final verdict on the Ripple lawsuit looms, expected on April 16, it appears that the XRP community is persevering through the widespread economic downturn. XRP’s Active Addresses Multiply Threefold in a Fortnight
On-chain data sourced from Glassnode reveals an impressive increase in active XRP addresses from February 21 to March 10. On February 21, XRP reported 89,606 active addresses, but by March 2, this figure had surged to an astounding 543,000.
Despite a minor slump following this, active addresses bounced back to 531,000 on March 7. As of March 10, XRP boasts over 370,000 active addresses—a significant leap from its earlier numbers.
Simultaneously, there’s been a noticeable drop in XRP’s exchange outflows from Binance. On March 7, XRP worth over $465 million exited Binance, marking the most substantial daily outflow in a month. However, the past three days have seen a marked reduction in outflows, hinting at a decrease in large-scale withdrawals from the exchange.
This discrepancy between price trends and network activity prompts important inquiries about market sentiment. A surge in active addresses typically signals elevated user engagement, implying growing demand or amplified transaction volume. The downturn in Binance outflows could suggest reduced pressure for accumulation or investors’ reluctance to shift assets away from centralized platforms, usually suggesting uncertainty about price trajectory.
Some experts propose that XRP’s price drop, despite robust network participation, may indicate short-term speculative trading rather than inherent weakness. The dip in exchange outflows could signify traders keeping their assets rather than offloading them. However, without a corresponding price surge, it indicates a balance where neither buyers nor sellers hold a clear upper hand.
While data highlights vibrant activity on the XRP Ledger, the market’s future remains uncertain. Whether this increased engagement will lead to future price recovery or ongoing consolidation is still up in the air.
