Is XRP Primed For A Breakout? Growing activity, strong metrics signal…

• XRP's price action shows signs of a potential breakout, supported by increasing transaction numbers and wallet growth.
• Exchange reserves and open interest reflect mixed sentiment, but bullish indicators point to potential upside momentum.

Ripple's XRP On-chain activity reached a six-month high, with active addresses hitting 12,230 and new wallet creations increasing by 10.39%, adding a remarkable 18,321 accounts.

This increase highlights renewed investor interest and could be a sign of strong bullish momentum. However, is this a passing trend, or are we on the cusp of a sustained uptrend?

Analyzing XRP's price action for breakout signs

At press time, XRP was trading at $0.5192, up 0.46% in 24 hours. Over the past months, XRP's price action has been positioned in a broad consolidation zone, but recent trends indicate a possible breakout.

Observing the Bollinger Bands, XRP is trading near the middle band, indicating that volatility remains low, although a bullish move could be in the offing.

The Relative Strength Index (RSI) sits at 41.83, near oversold territory. Therefore, any sustained rise in RSI could bring positive momentum if XRP holds above its ascending trendline.

Source: TradingView

Transaction count highlights increase network engagement

XRP's transaction volume reached 1.5655 million, showing an increase of 1.24% in the last 24 hours. This increase in consistent transactions manifests higher network engagement, which often correlates with increasing price momentum.

Consequently, this upward trend in transactions may indicate an underlying demand for XRP. If the number of transactions continues to increase, this could support further price increases, reflecting greater interest in XRP's utility and potential price growth.

Source: CryptoQuant

XRP indicates caution on exchange reserve buying pressure

Currently, the exchange reserve stands at 3.11 billion, a slight increase of 0.36% in the last day. An increase in exchange reserves often signals that more coins are being held on exchanges, suggesting potential selling pressure.

This surge could challenge XRP's upward momentum.

However, if exchange reserves begin to decline, this would indicate less selling pressure, possibly paving the way for a more significant rally. Therefore, it is essential to keep a close eye on reserves to accurately gauge short-term sentiment.

Source: CryptoQuant

Rising open interest signals rising speculation

Open interest in futures increased by 1.61%, reaching $701.52 million, reflecting a higher level of market participation. This increase in open interest suggests that traders are betting on significant price action with interest in the future performance of the altcoin.

If this trend continues, it could reinforce a bullish scenario, especially if it aligns with declining exchange reserves and a strong RSI.

Source: Coyonglas

Realistic or not, here is XRP's market cap in terms of BTC

Is XRP Primed For An Uptrend?

Increased transaction numbers and open interest underscore rising optimism and strong market engagement. However, elevated exchange reserves indicate a potential selling pressure that could slow a rally.

For XRP to capitalize on this momentum to ensure a bullish trend, buying support as well as a decline in exchange reserves is crucial. With these factors aligning, XRP could indeed be set for a breakout.