XRP Network Activity Soars as Top Trader Turns Bullish

One of the most renowned analysts in the industry maintains that XRP is primed to resume its uptrend. 

XRP Network Activity Soars as Top Trader Turns Bullish
Shutterstock cover by Wit Olszewski

Key Takeaways

  • XRP's price action seems to be contained within a tight range.
  • A weekly close outside the $1.72 to $1.00 pocket will determine the direction of the trend.
  • Renowned analyst Peter Brandt appears to be leaning bullish while on-chain activity explodes.

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XRP could resume its uptrend towards new all-time highs upon the break of the $1.17 resistance barrier. 

XRP Well-Positioned For New All-Time Highs

Ripple’s XRP token could be ready to make a bullish run.

According to 40-year trading veteran Peter Brandt, XRP’s price action is “constructively” governed by a multi-year head-and-shoulders pattern that has formed on its weekly chart. 

The sixth-largest cryptocurrency by market cap skyrocketed by a massive 230% in late March, marking the breakout of the consolidation pattern. Then, XRP reversed to the head-and-shoulders’ neckline at $0.61 to shake out some of the so-called “weak hands.” 

Prices have bounced back above the $1.00 psychological level since Jul. 20 where the asset is currently consolidating. 

XRP US dollar price chart
Source: TradingView

The Fibonacci retracement indicator, measured from the Apr. 14 high of $1.96 to the Jun. 22 low of $0.51, suggests that XRP is currently stuck in a tight range. The 61.8% Fibonacci retracement level at $1.17 is acting as resistance, while the 50% retracement level at $1.00 is containing prices from a steep decline. 

A decisive weekly candlestick close above the overhead barrier could signal the resumption of the uptrend. Under such unique circumstances, XRP could enter a new uptrend to meet the target of the head-and-shoulders pattern at $3.42. 

Network Activity Explodes

When considering the rising number of active addresses on the XRP network, the bullish thesis holds. Roughly 6,700 addresses are interacting with the network, representing a 394% jump from last week.

XRP Daily Active Addresses
Source: Santiment

A spike in the number of active wallets tends to be followed by rising prices. Still, it is imperative to wait for a sustained candlestick close outside the $1.72 to $1.00 price range to determine where XRP is heading next. 

Slicing through resistance might push this token to new all-time highs while losing the underlying support barrier could result in correction to $0.85 or even $0.70. 

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