XRP market watch – Can network activity help altcoin after 9% drop?

• XRP registered a double-digit decline in the last 48 hours
• Many addresses have become more active recently

XRP has been at the end of significant price movements over the last few days, hitting one of its highest levels in months. This uptrend positively influenced network activity, with the same reflecting in an increase in both daily new addresses and active addresses. 

New addresses see the day

A recent analysis of Ripple’s network growth from Santiment revealed a significant hike in network engagement. Typically, the average number of new XRP addresses created daily ranges between 800 and 1,000. However, a noticeable uptick began around 14 July. In fact, by 17 July, the number of new addresses had surged to over 1,700.

This level of growth in daily new addresses was the most significant hike XRP has seen since March. Such a spike often reflects heightened interest and optimism in the asset, potentially driven by favorable market conditions. 

Source: Santiment

However, at the time of writing, network growth had fallen massively to around 343. This suggested that the number of daily new addresses declined for the same reasons that made it spike initially. 

More activity

The aforementioned analysis also revealed that more addresses became active as the number of new addresses spiked. 

On 17 July, the number of daily active addresses on Ripple‘s network surged to over 47,300, coinciding with a spike in new address creations that hit a high not seen since March. This simultaneous increase in both new and active addresses can be interpreted as a sign of heightened overall engagement on the network.

Source: Santiment

Although there was a slight decline in active addresses to over 37,000 on 18 July, these numbers still represent a relatively high level of network activity. Notably, this period marked the first instance of the network maintaining consecutive daily active address counts over 30,000. 

Additionally, an analysis of its 30-day active addresses metric also underlined a notable hike. Starting around 14 July, there was a distinct upward trend. On that day, the number of active addresses was approximately 208,000. Since then, however, this number has climbed to over 232,000.

Down goes XRP

A look at the altcoin’s charts revealed a series of fluctuations in its market behavior. After a notable rise culminated in gains of over 8% on 17 July, a hike that pushed its price to around $0.60, the altcoin recorded consecutive red candles on the charts. 

In fact, AMBCrypto found that XRP noted a significant drop of over 9% in the last trading session, bringing its price down to approximately $0.56.

Since then, the price has declined by another 4%, with the crypto valued at around $0.54 at press time. 

Source: TradingView

– Realistic or not, here’s XRP market cap in BTC’s terms

Here, it’s worth pointing out that despite XRP losing so much of its value on the charts, it’s not all bad news. Its price is still trading above its long-term moving average (blue line) – A key support level.