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A broader market optimism for risky assets supports potential XRP gains.
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Speculation suggests that XRP could surpass Ethereum and target a price of >$10
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Data from the on-chain shows a sharp decline in the creation of new XRP addresses, raising adoption concerns.
XRP, a digital asset that is often at the center of crypto discussions, has a complex picture to present right now. Technical analysis of the daily chart against USDT reveals a bullish break out, while on-chain data shows a worrying decline in network growth.
Market analysts support the bullish case by pointing out that “risk-on assets” such as XRP have a strong potential. They see the current market consolidation as a pause prior to a significant surge, drawing comparisons with past Bitcoin cycles.
The analysis speculates that XRP could surpass Ethereum in terms of market cap during a significant bull-run. Predictions that XRP could reach a market capitalization of $1 trillion and a price of $10 or more have also been made.
On-Chain Data Flashes Warning Signal
On-chain data provided by analyst Ali Martinez tempers this view. Recent figures show a significant drop in the creation of XRP addresses. The number has dropped from 5,200 to only 2,900 over the last month.
This decrease in activity could indicate a slowing adoption rate or waning interest within the XRP eco-system, a factor which could pose challenges for sustained long-term growth.
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Chart of XRP Hints at Potential Upside
The Bollinger Bands are visible on the daily chart via TradingView. They show that the price action is largely contained within the boundaries of the bands. A recent test at the upper band suggests an increase in volatility and possible attempts to breach the resistance. The upper Band of $2.2 is a resistance to XRP’s price movement, while the middle band at $2.05 provides the closest support.
The Relative Strength Index, which is currently hovering at a neutral 50 level, must climb above 60 in order to confirm further bullish momentum along with a price breakout.
According to the analysis, a break above the $2.20-$2.25 level, accompanied with strong trading volume, may propel XRP towards higher price targets. These are calculated based on height of the triangle base.
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If this resistance is not broken, a price correction could occur and the $2 support level will be lost.
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