The overall cryptocurrency market is enjoying mighty growth, but XRP has lagged, remaining below the key $0.55 level since early October. Analysts and investors are closely watching for signs of strength and confirmation that XRP is poised for significant gains in this market cycle.

Santiment’s key data is hopeful. It shows a noticeable augment in the number of energetic wallets on the XRP ledger, which could signal growing interest and accumulation.

As the broader market continues to rise, the coming days will be crucial for XRP. Investors are hoping for a breakout from weeks of sideways consolidation that have kept price movements subdued.

A decisive move above $0.55 could spark bullish momentum and put XRP on track to catch up with the broader market rally. For now, the market is eagerly waiting for further developments, and many expect that XRP’s moment may finally come.

XRP ledger activity signals a change

XRP remains one of the most popular altcoins in the cryptocurrency market, but many investors are becoming increasingly concerned as the price struggles to regain local highs around $0.65. Despite the lack of growth dynamics, critical data from Santiment gives a ray of hope.

XRP Ledger has recently seen a significant augment in activity, with 35,799 unique wallets making at least one transfer per day, marking the highest level of activity in over three months. Additionally, 3,858 modern wallets were created in a single day, the largest augment in seven months.

This augment in network activity is an encouraging sign for XRP, as spikes in the number of energetic wallets and modern addresses often precede huge price moves. Growing interest in XRP could be an early indicator of an impending shift in price action, especially amid an upward trend in the broader market.

However, the price still needs to break above local highs around $0.65 to confirm the bullish trend. While network data points to potential growth, the coming weeks will be crucial for XRP price movement.

If it manages to reclaim key resistance levels, XRP could finally align with the bullish sentiment across the market, providing investors with a more hopeful outlook.

Price Action: Technical Levels to Watch

After three weeks of sideways movement, XRP is trading at $0.555. It remains below the 4-hour exponential moving average (EMA) at 200, but is currently testing this key indicator as resistance.

A successful break above the 200 EMA followed by consolidation and holding it as support would likely mean a rally to the higher supply zones around $0.60 and potentially $0.65. This breakout would confirm a renewed augment in dynamics, encouraging investors to wait for a clear upward trend.

However, if XRP fails to break above the 200 EMA and these critical resistance levels, a move back to $0.52 or even lower could be inevitable. Failure to break this resistance would indicate further consolidation or even correction as the market moves towards lower levels of liquidity.

As XRP continues to test this key technical level, the next few days will be crucial in determining whether the altcoin can finally break out of range-constrained trading and follow the bullish sentiment in the broader market.

Featured image from Dall-E, chart from TradingView