XRP might be setting the stage for another price pump following notable spikes in daily active addresses if it repeats historical patterns observed in past cycles.
XRP failed to leverage the latest market-wide rally to seal its hold over the $0.50 threshold. Despite this bearish reality, on-chain data suggests the asset could be gearing up for a pump if it repeats historical patterns observed earlier this year.
This historical pattern involves XRP’s daily active addresses. A prominent crypto chartist, Ali Martinez, recently called attention to the pattern.
The last three instances $XRP price jumped were preceded by a spike in the number of active #XRP addresses.
On-chain data from @santimentfeed has recorded a spike in network activity over the past few days. Could history repeat itself? pic.twitter.com/XoJAFsDuvo
— Ali (@ali_charts) June 26, 2023
Citing data from market intelligence provider Santiment, Ali identified that XRP’s last three price pumps occurred shortly after the asset saw notable spikes in address activity.
Past XRP Address Activity Spikes
A closer look at the “XRP Active Addresses 24H” Santiment chart corroborates these findings by Ali. Notably, XRP saw a massive increase in daily active addresses on Jan. 6, 7, and 11. XRP was changing hands at the $0.33 territory.
These observable spikes in daily address activity immediately preceded a massive pump in XRP’s value. XRP rallied from a price of $0.329 on Jan. 2 to a high of $0.423 on Jan. 24.
In addition, XRP’s biggest pump this year, which occurred in March, also came after a marked spike in address activity. XRP’s active addresses on Mar. 20 surged to a massive 872K.
Following the astronomical increase in active addresses, XRP surged from $0.385 on Mar. 21 to $0.571 on Mar. 29. This rally marked a 48.3% increase in just nine days. The Crypto Basic called attention to the pump on Mar. 21.
The last time XRP saw another spike in daily address activity was on May 29, when active addresses hit 708.53K. Once again, XRP rallied, rising from $0.448 to $0.517 on Jun. 13. This rally also coincided with the release of Hinman’s documents.
History to Repeat Itself?
As Ali rightly pointed out, XRP has now experienced similar spikes in address activity. Daily active addresses in the past four days have increased to 142K on Jun. 23, 147K on Jun. 24, 135K on Jun. 25, and 144K on Jun. 26. This is the longest streak of address activity above 130K this year.
Should XRP follow the historical pattern witnessed throughout this year, this recent surge in address activity could signify a looming price pump. However, this should not serve as investment advice, as price trends experience shifts at times.
Meanwhile, XRP is changing hands at $0.4799, down 1.17% over the past 24 hours. A failure to capitalize on the recent market pump has seen XRP drop from the psychological $0.50 level. However, XRP has a knack for embarking on solo runs, as observed in March and May.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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