XRP has seen a nearly 10% increase in its price over the past week, continuing its upward momentum amid the broader market recovery. As of this writing, the popular altcoin trades at $2.28.
The improving broader market conditions have driven new interest from XRP traders and encouraged its long-term holders (LTHs) to reduce their selling activity.
XRP Rises Amid Growing Demand
The recent uptick in XRP’s price has been fueled by a rise in the number of new addresses created for the altcoin. According to Glassnode, this reached a two-week high of 3,677 addresses on April 28.
When the count of new addresses created to trade an asset climbs like this, it signals an influx of fresh capital and increased market activity. As new traders enter the market, they can help to strengthen XRP’s rally and drive its overall price stability.
Moreover, XRP LTHs (those who have held their tokens for more than 155 days) have refrained from selling their holdings over the past week. This shift in behavior is reflected in the drop in the token’s Liveliness metric, which measures the movement of its older coins.
It is currently at 0.81, its lowest since December 1. When Liveliness drops like this, it suggests that these LTHs are refraining from selling or transferring their coins, signaling reduced selling pressure in the market.
This reflects investors’ confidence in XRP and indicates the potential for continued upward price momentum.
XRP Bullish Momentum: Could $2.50 Be Next?
On the daily chart, the steady rise in XRP’s Relative Strength Index (RSI) confirms the bullish outlook above. At press time, the momentum indicator is at 60.10 and remains in an upward trend.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a dip. Conversely, values under 30 signal that the asset is oversold and could witness a rebound.
At 60.10, XRP buying pressure outpaces selling activity. If this trend persists and the token’s price breaks through the resistance at $2.29, it could climb toward $2.50.
On the other hand, if selloffs resume, XRP could shed recent gains and plunge to $1.99.
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Disclaimer
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