XRP Active Addresses Surge Despite a 10% Price Drop

Key Points

• XRP Active Addresses Surge Despite a 10% Price Drop
•  XRP price dropped below $2, declining 17% in a week.
• Active XRP addresses surged from 89,606 to 370,000 in 2 weeks.
•  Binance’s XRP outflows hit $465M but have now sharply declined.
• Increased network activity suggests strong engagement despite uncertainty.

XRP has fallen below the $2 mark, suffering a 17% decline over the past week. Despite this bearish trend, on-chain data reveals a significant rise in network activity. The number of active XRP addresses has tripled in just two weeks, signaling heightened user engagement.

Source: aixrp – Techtoken

This trend comes at a time when the broader crypto market is facing challenges, including a $45 billion DeFi TVL drop. The decline in total value locked across decentralized finance platforms suggests a shift in liquidity, which could also impact assets like XRP.

With the final ruling in Ripple’s long-standing legal battle expected on April 16, investor sentiment remains mixed. While some view the increased network activity as a sign of strength, others worry that the price could remain stagnant amid macroeconomic uncertainties.

Source: bulid.base.eth – Techtoken

XRP Addresses Triple, Binance Outflows Slow

According to on-chain data from Glassnode, XRP’s active addresses surged from 89,606 on February 21 to over 543,000 by March 2. Although the number dipped slightly, activity remained high at 531,000 on March 7 and still holds strong at 370,000 as of March 10.

Number of XRP Active Addresses. Source: Glassnode – Techtoken

The spike in active addresses suggests increased transaction volume on the XRP Ledger. However, this does not necessarily indicate a price breakout, especially considering the recent slowdown in Binance outflows.

On March 7, Binance saw over $465 million worth of XRP withdrawn, marking the highest single-day outflow in a month. However, withdrawals have significantly declined in the last three days. This suggests that large investors may be taking a cautious approach rather than aggressively accumulating XRP.

XRP Outflow (USD) from Binance. Source: CryptoQuant – Techtokn

At the same time, broader market forces, including regulatory uncertainty and potential economic shifts, could impact XRP’s price trajectory. Analysts have drawn comparisons between current trends and the Trump tariff war, which led to a Bitcoin rally in 2017. If similar conditions unfold, XRP could experience unexpected price movements.

What’s Next for XRP?

The divergence between XRP’s rising network activity and its declining price leaves analysts divided. Typically, a surge in active addresses suggests increased demand. However, the slowing Binance outflows indicate that investors are uncertain about the asset’s near-term direction.

Some believe that XRP’s decline is driven more by short-term trading than by fundamental weakness. If traders continue to hold their XRP instead of moving them off exchanges, it could signal expectations of a future rebound. However, without a strong price rally, XRP may remain in a consolidation phase.

XRP Weekly Price Chart. Source: Techtoken

The crypto market is no stranger to strategic accumulation and long-term positioning. Prominent investors like Michael Saylor have embraced Bitcoin as a reserve asset, and some speculate that a similar approach could emerge for XRP. If institutions begin adopting XRP as a strategic holding, it could fuel future price appreciation.

Meanwhile, there’s also speculation that geopolitical factors, including policies from Donald Trump, could influence crypto markets. If pro-crypto narratives gain traction, assets like XRP could benefit.

For now, XRP remains at a crossroads. The coming weeks—particularly as Ripple’s legal case approaches resolution—will be crucial in determining its next move. Will increased activity drive prices higher, or will market uncertainty keep XRP in limbo?