XRP is experiencing renewed bullish momentum after breaking out from a recent technical pattern, backed by increasing whale activity and growth in the number of user wallets. Market analysts have pointed to strengthening technical indicators supporting the token’s recovery and further expansion as the XRP Ledger (XRPL) ecosystem develops.
XRP Rebounds as Analysts Predict New Cycle
Market observer Ed_NL has identified signs that XRP may be entering a new upward phase. He noted that the asset completed five sub-waves before undergoing an ABC correction, which brought the price into a key Fibonacci retracement area.
After touching the 0.786 Fibonacci retracement, XRP rallied past a previous bearish pattern, signaling the potential start of a new upward trend. Ed_NL projects that XRP could reach a target of $4.40 under regular trading conditions, but suggests further upside acceleration is possible if momentum continues building.
TradingView data highlights XRP’s short-term trajectory, with the price rising from $1.25 to nearly $1.66 before a pullback to $1.53. Despite the retracement, XRP continues to trade above key moving averages, with its 20, 50, 100, and 200 exponential moving averages (EMAs) remaining supportive. As shorter-term EMAs lead longer-term ones, the trend appears constructive.
However, technical momentum has eased since the relative strength index (RSI) surged above 70 at $1.66, signaling an overbought condition. The RSI has since moderated to 55.95, reflecting diminished upward momentum.
Ed_NL foresees a minimum target of $4.40 for XRP in this phase, while acknowledging that increased momentum could drive prices higher at a faster pace if trading conditions intensify.
Trading Volumes Expand as Whale Participation Rises
Market derivatives data shows a notable increase in XRP trading activity. CoinGlass reports daily volume rising by 14.31% to $9.77 billion, even as open interest declined by 2.61% to $3.77 billion. This pattern suggests reduced leverage in the market, often due to liquidation events or a transition away from newly opened positions, while overall market engagement remains significant.
The combination of strong trading volumes and declining open interest indicates heightened trading, although it may not directly suggest a continuation of the upward trend. Instead, it underlines the dynamic environment where many traders are shifting their positions.
On-chain monitoring firm Santiment has also tracked a marked increase in large XRP transactions and new wallet creation. Whale transactions greater than $100,000 surged to 1,917, the highest level in around a month, signaling active participation by large holders. The overall number of wallets on the network grew by 3,647, further highlighting the active growth of the XRP user base.
On-chain metrics show the most significant whale transaction activity in a month, while newly created wallets point to a broader spread of activity across the XRP network.
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XRPL Ecosystem Expands with Institutional Support
The XRP Ledger ecosystem continues to branch out towards new applications, including tokenization and settlement services. According to Santiment, XRPL’s tokenized asset balances alongside RLUSD have reached $4.26 billion, with Ripple reporting $2.4 billion in RLUSD as circulating supply.
Institutional involvement is growing as well. Bitwise recently filed to register a new XRP ETF with the SEC, moving the asset closer to mainstream financial products. The steady addition of new wallets, accelerating transaction volumes, and continued whale activity all point to expanding infrastructure and a maturing network environment as XRP aims for further gains.
