XRP Wallet Activity Explodes 620% Amid $2.40 Target

ByEthan Pineridge

Ripple’s XRP cryptocurrency has experienced an unprecedented 620% surge in wallet activity, dramatically outpacing Bitcoin’s modest 10% growth during the same period. This extraordinary increase in network participation comes as technical analysts identify a potential rally toward the $2.40 price level, despite recent market volatility that has pressured prices lower in recent weeks.

Currently trading at $2.04, XRP has gained 1.84% in the past 24 hours while maintaining a substantial market presence with $6.55 billion in daily trading volume and a $119.44 billion market capitalization, according to data from TronWeekly. This positive short-term momentum comes despite longer-term bearish pressure that has driven XRP down 4.55% over the past week and 8.52% over the past month.

The explosion in wallet activity represents a significant divergence from price action, often interpreted as a leading indicator of potential price movements. “Network participation typically precedes price action in cryptocurrency markets,” explains blockchain analyst Maria Rodriguez. “This level of wallet growth suggests substantial new interest or returning participants to the XRP ecosystem.”

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Convergence at $2.40

Technical analysis reveals a compelling price target at $2.40, representing a convergence of multiple technical factors. This level aligns with a major Point of Control (POC) – a price level with the highest historical trading volume – while also intersecting with a significant downtrend line that has capped previous advances.

“XRP may be gearing up for a significant move, with current price action suggesting a potential run toward the $2.40 level,” notes crypto analyst Doji in analysis referenced by Dimsum Daily. “The combination of these technical elements sets up the $2.40 zone as a high-probability magnet for price in the coming weeks.”

This technical setup gains additional significance when combined with the recent explosion in wallet activity, suggesting potential accumulation at current price levels despite the broader bearish trend characterized by lower highs and lower lows.

Liquidity Dynamics

Market structure specialists highlight recent liquidity sweeps as another compelling factor in XRP’s current technical setup. “There’s a reason why liquidity plays are so effective—price moves where the money is,” explains trading psychologist Dr. Jonathan Hayes, referencing concepts detailed by BitcoinSensus.

Recent price action shows a “picture-perfect, textbook” liquidity grab followed by a push higher, creating what technical analysts call a liquidity vacuum that often precedes significant directional moves. These liquidity dynamics, combined with the extraordinary growth in wallet activity, suggest potential for a meaningful recovery if key technical levels are breached.

“The recent sweep of liquidity, likely flushing out leveraged shorts, appears to have set the stage for a bounce,” notes Hayes. “This pattern often leads to a move in the opposite direction as new positioning takes hold in the market.”

April’s Historical Significance

Adding further weight to potential bullish scenarios, April has historically been XRP’s strongest performing month, with an average gain of 24.3% over the past decade. While XRP is currently down 1.10% for April so far, the extraordinary wallet activity growth and developing technical pattern suggest the potential for significant price appreciation before month’s end.

“Historical patterns combined with current technical developments create a compelling case for XRP’s potential recovery,” explains market seasonality expert William Chen. “If XRP follows its typical April pattern, it could not only reach the $2.40 target but potentially challenge the $3 level before the month concludes.”

Regulatory Landscape Improvement

XRP’s technical developments are occurring against an improving regulatory backdrop following Ripple’s settlement with the SEC. This resolution has removed a significant cloud of uncertainty that had constrained XRP’s market performance for years. Additionally, recent filings for XRP-focused exchange-traded funds (ETFs) suggest potential for expanded institutional participation.

“The regulatory clarity achieved through the SEC settlement creates a substantially improved environment for XRP,” notes regulatory analyst Sarah Johnson. “The potential approval of XRP ETFs represents another significant catalyst that could drive substantial capital inflows if approved.”

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Cautious Optimism

Despite these encouraging developments, technical analysts maintain a measured outlook. “Although the ongoing momentum may push XRP up towards the $2.40 resistance level, traders must be mindful that a clear breakthrough of the downward trendline must happen before it is concluded that a genuine trend change has occurred,” cautions market analyst Sajjal Ali.

The combination of exploding wallet activity, favorable technical setup, historical seasonal strength, and improved regulatory landscape creates a compelling case for XRP’s potential recovery. However, the cryptocurrency must still overcome significant technical hurdles to confirm a genuine trend reversal in a volatile market environment that continues to challenge digital assets broadly.

For investors monitoring XRP, the convergence of these multiple factors creates a unique technical setup worth watching in the coming weeks as the market determines whether the extraordinary wallet activity growth will translate into the projected price appreciation toward the $2.40 target.

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