XRP has surged after the U.S. Securities and Exchange Commission (SEC) officially dismissed its lawsuit against Ripple. The announcement fueled a 14% XRP price jump within 24 hours.
The rally is backed by strong technical momentum and increased buying activity, while XRP’s network activity has also reached record highs.
XRP prices surge as buyers capitalize on bullish momentum
A critical technical indicator, the Directional Movement Index (DMI), indicates buyers are in control. Average Directional Index (ADX) has risen from 15.64 to 20.4. This means that the current trend is gaining strength.
The ADX is not directional, meaning it doesn’t tell whether the trend is upward or downward. However, combined with the (Directional Movement Index) +DMI and -DMI indicators, they can indicate the market’s direction. In XRP’s case, the +DMI has spiked from 18.3 to 39, and the -DMI has fallen from 19.63 to 12.97.
This indicates aggressive demand and softening supply. If this momentum persists, the price of XRP may increase further. The ADX must also be over 25 to indicate a strong trend — but this is already a good sign.
XRP users set new activity records
XRP blockchain activity is up, and active addresses reached a record 1.19 million in a week, an increase of almost five times from 237,000 on February 27. This fast pace of growth indicates a large increase in engagement and adoption of the network.
This uptick in activity is indicative of interest from retail traders, institutional investors, and the market in general. This can result in lower XRP volatility and greater XRP price movements.
A rise in active addresses generally translates into a growth in transactions, which can drive price volatility. But XRP’s price action remains bullish, with a golden cross pattern—a key bullish indicator—just about to form as a short-term moving average closes in on a crossover with a long-term moving average.
Should this trend continue, XRP may retest the $2.648 resistance line and, if buying pressure increases, potentially hit $2.99. A breakout above this level could lead price above $3.
If the momentum wanes, XRP will likely find it difficult to maintain its current range. The main level of support is at $2.47. If the price drops below $2.90, XRP may fall to $2.21 or even $1.90.
Ripple CEO hints at reduced XRP sales
In a recent Bloomberg interview, Ripple CEO Brad Garlinghouse addressed concerns about the company’s XRP sales, hinting that such sales could be reduced going forward.
Garlinghouse said that while Ripple holds 42% of XRP’s total supply at the moment, maybe they won’t be selling as much at some point. He also denied that Ripple’s holdings of XRP were “falsehoods.”
Ripple is now faced with an important choice: Do they settle with the SEC for $125 million (money that is already in escrow) or cross-appeal, which could defy the resolution of various lingering legal questions? Garlinghouse still seems somewhat optimistic, noting that Ripple is financially healthy and that recovering the fine wouldn’t be a problem.
On the other hand, Ripple is also working on expanding its ecosystem and aims to make its Ripple USD (RLUSD) stablecoin one of the top five ranks of the market by the end of the year. This could strengthen XRP’s position even more and boost its long-term growth potential.
