CryptoQuant: XRP to rise above $ 3

The price of XRP XRP $2.09 XRP -3.36% Market capitalization $123.34 billion VOL. 24 hours $0.28 billion may be on the verge of significant growth after several weeks of negative dynamics. According to analysts, the main factor for optimism was a sharp change in the coin’s reserves on exchanges: according to CryptoQuant, more than 5 billion XRP were withdrawn from Binance in the last five days alone, which is about 8% of the total amount of the coin in circulation.

Such a reduction in reserves is often perceived as a signal for a price increase, as the coin becomes less available for sale. In addition, the market has seen more than $ 13 billion worth of XRP withdrawals ahead of an important announcement regarding Ripple and the token itself.

After falling to $ 1.90 last Sunday, XRP recovered to $ 2.18, showing a 14% increase. Analysts note that the recovery began after reaching the oversold zone on the 4-hour chart, and a bullish divergence between the price and the RSI index was recorded on the weekly timeframe.

These changes were also triggered by external factors: The US Federal Reserve has allowed banks to conduct cryptocurrency transactions, which opens up new opportunities for the market to attract liquidity and for Ripple to cooperate with the banking sector. Expectations are also growing regarding the possible approval of an ETF based on XRP.

At the same time, analysts point to a decline in the number of active addresses in the XRP Ledger network — their number fell from more than 20 thousand to about 7 thousand per day. However, this may not be due to a decrease in demand, but to less activity on decentralized exchanges, while demand on centralized platforms remains high.