Ripple’s XRP has been consolidating in a horizontal channel since August 18, but market momentum appears to be shifting in favor of the bulls.
On-chain data highlights a steady uptick in the demand for the altcoin, suggesting that, despite the relative balance between bears and bulls, buying pressure is beginning to make a comeback.
Range-Bound XRP Awaits a Decisive Move
Readings from the XRP/USD one-day chart highlight the token’s muted price action. Since August 19, it has been confined within a horizontal channel.
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This pattern emerges when an asset trades sideways between two parallel price levels, reflecting indecision in the market as neither bulls nor bears manage to establish dominance.
Since August 19, XRP has struggled to break above resistance at $3.08, while maintaining support at $2.84. This range-bound movement shows weak momentum in either direction, leaving traders waiting for a decisive breakout.
However, the bulls might be gearing up to regain control.
XRP Sees Renewed Utility and Optimism
According to Santiment, the count of daily active addresses engaging with the XRP Ledger has climbed consistently in the past four days. Per the data provider, active address count on the XRP Ledger totaled 44,123 on August 26, climbing 20% from 37,615 recorded on August 24.
An uptick in active address count signals rising network participation, suggesting that more users are transacting with or interacting on the XRP Ledger.
This increase is a healthy sign of growing utility and demand, reinforcing investor confidence. The 20% jump in active addresses on the XRP Ledger over three days highlights renewed activity on-chain, which could trigger a breach of the resistance at $3.08.
In addition, XRP has seen a rise in positive weighted sentiment across the market, confirming the bullish outlook above. According to Santiment, this stands at 1.24 at press time.
This metric analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a cryptocurrency. It considers the volume of mentions and the ratio of positive to negative comments.
When weighted sentiment is positive, it indicates more positive comments and discussions about the cryptocurrency than negative ones, suggesting a favorable public perception. If this continues, XRP’s price could resume its upward trend.
XRP Eyes Breakout Above $3.08 as Accumulation Grows
A steady rise in accumulation among XRP holders could provide the momentum needed to challenge the resistance at $3.08. A successful breakout above this price wall may pave the way for a stronger rally toward $3.22.
On the other hand, if buyers fail to sustain upward pressure, XRP risks slipping back into its sideways trading pattern. In that scenario, the token could eventually test support at $2.84, with a breakdown below this level likely.
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