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XRP continues to see relatively high number of daily active addresses despite 9.2% pullback in price

Yesterday, XRP price begin to a decent increase above the $0.278. XRP gained bullish momentum above the $0.2850 resistance level and settled above the 100 hourly simple moving average. It even broke the $0.29 but struggled to gain pace above the $0.2920 resistance. A high is formed near $0.2919 and the price is currently correcting lower. It broke the $0.29 and $0.288 level.

XRP price trading in a positive zone above the $0.2850 support zone

There was also a break below the 23.6% Fib retracement level of the recent increase from the $0.2781 low to $0.2919 high. It is currently approaching the $0.2850 support level and the 100 hourly simple moving average.

xrp-continues-to-see-relatively-high-number-of-daily-active-addresses-despite-9-2-pullback-in-price

Ripple price trades above $0.285 | Source: TradingView.com 

More importantly, there is a key ascending channel forming with support near $0.2850 on the hourly chart of the XRP/USD pair. The channel support is close to the 50% Fib retracement level of the recent increase from the $0.2781 low to $0.2919 high.

On the upside, the XRP price seems to be facing hurdles near the $0.2920 level. The main hurdle is near the $0.2950 level, above which the bulls are likely to aim a larger upward move towards the $0.3000 barrier in the coming sessions.

If XRP struggles to clear above the $0.2920 and $0.2950 resistance levels, there could be a fresh decline. Initial support is near the channel lower trend line at $0.2850.

A clear break below the channel support could push the price back towards the $0.2780 pivot level. Any further losses is likely to call for a new weekly low below $0.2720.

XRP’s active addresses far below the February peak

According to Santiment, XRP is only one of the few altcoins that are currently displaying such a bullish divergence. The number of XRP’s DAA recently climbed to a seven-day high of 9,499 on Aug. 24 despite the coin retracing 9.2 percent over the past week.

XRP registered the highest number of DAA (70,944) since its creation on Feb. 13. For comparison, the cryptocurrency had only 50,583 active wallets when it hit its lifetime peak of $3.11 on Dec. 28, 2017.

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Source: Santiment

Notably, the number of XRP’s daily active addresses remains infinitesimally low compared to Bitcoin and Ethereum. Bitcoin reached 1,120,216 active wallets, a new 2020 high, on Aug. 7. After BTC dipped below the $11,500 level on Aug. 22, it continued to average more than 900,000 daily active addresses, which is close to 12,000% higher than XRP. Ethereum is sitting at 400,000 daily users after reaching a local peak of 523,470 on July 28.

XRP is positioning to ignite a massive move up

In a new video, the analyst Credible Crypto said that the bear market bottom is already in for XRP. And he expects XRP bulls to start flexing their muscles soon.

He stated:

“We’re now at the stage where XRP is about the break that high, so I’m looking for an expansion to the upside and my initial area of resistance is going to be this $0.40 region. Then, we may come down for a correction to retest these highs and then I expect we get our major wave three to start. That major wave three is going to be larger than the major wave one… We’d expect our wave three to travel, at the very minimum, to $0.67. That’s a massive move. That’s double where we are at right now.”

Credible Crypto analyzes XRP’s price action using Elliott Wave Theory. The advanced technical analysis method relies on identifying recurring wave patterns that show the repetitive behavior of market participants. Based on Elliott wave principles, the third wave is typically when the most explosive price expansion occurs in a bull cycle.

As for Bitcoin, the crypto strategist believes that the crypto king is now in bull territory.

He sees the top cryptocurrency gunning for $14,000 resistance in the near term:

“Now that we’re above [the $10,000] level, it is essentially acting as support. So for me, this is essentially our new floor before we break $14,000. I do expect that this area essentially holds and then eventually we grind our way up to $14,000 plus. I’m expecting us to reach above $14,000.”

You can see the XRP price here.

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