XRP Poised for $2.40 Breakout After Massive Wallet Surge

ByMason Drake

Ripple’s XRP is showing signs of a potential rally toward $2.40 despite recent market volatility, fueled by extraordinary growth in wallet activity that has outpaced even Bitcoin. Technical analysts point to a significant accumulation phase forming amid key liquidity patterns that could signal an impending breakout from the current trading range.

XRP is currently trading at $2.04, up 1.84% in the last 24 hours, according to data from TronWeekly. While the cryptocurrency has experienced downward pressure in recent weeks – falling 4.55% over the past week and 8.52% over the past month – on-chain metrics suggest a potential trend reversal is forming.

Most notably, XRP has registered a staggering 620% increase in active wallet addresses, dramatically outperforming Bitcoin’s modest 10% growth during the same period. This surge in network participation often precedes significant price movements, according to market analysts.

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Technical Confluence at $2.40

Technical analyst Doji has identified the $2.40 level as a critical price target, representing a confluence of multiple technical factors. “This target coincides with a major Point of Control (POC), a level of heavy volume, that also crosses a downtrend line that serves as a point of resistance since XRP’s last advance,” the analyst explained in a recent market analysis, as reported by Dimsum Daily.

This technical setup creates what traders call a “price magnet” – a level where multiple factors could draw the price in the coming weeks. The recent liquidity sweeps that flushed out leveraged shorts appear to have set the stage for a potential upward move, with price action showing signs of recovery from recent lows.

“Although the broader trend remains bearish, marked by a consistent structure of lower highs and lower lows, recent developments show signs of a potential range forming,” notes market analyst Sajjal Ali. “The combination of these technical elements sets up the $2.40 zone as a high-probability target in the coming weeks.”

April’s Historical Significance

Adding to the bullish case, April has historically been XRP’s strongest performing month, with an average gain of 24.3% over the past decade. While the cryptocurrency is down 1.10% for April so far, the current accumulation pattern and increasing wallet activity suggest the potential for a significant recovery before month’s end.

“XRP has a well-established pattern of outperforming during April,” explains cryptocurrency researcher Michael Thompson. “The current technical setup, combined with historical seasonal performance, creates a compelling case for a potential move toward the $2.40 resistance level, with the possibility of reclaiming the $3 mark if momentum continues.”

This seasonal pattern aligns with the technical indicators suggesting accumulation is occurring at current price levels. The recent liquidity sweeps described by BitcoinSensus as “grabbing a juicy chunk of liquidity on the daily timeframe” may have set the stage for the next leg up in XRP’s price action.

Regulatory Tailwinds

Recent regulatory developments have also contributed to growing market optimism surrounding XRP. Ripple’s settlement with the SEC has removed a significant cloud of uncertainty that had constrained XRP’s growth potential for years. Additionally, recent filings for XRP-focused exchange-traded funds (ETFs) could provide further institutional validation and capital inflows.

“The regulatory clarity following the SEC settlement provides a more favorable environment for XRP’s growth,” notes regulatory expert Sarah Jensen. “The potential approval of XRP ETFs would represent another significant milestone, potentially attracting institutional investors who previously avoided the asset due to regulatory concerns.”

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Caution Amid Optimism

Despite the positive signals, market experts urge caution. The broader cryptocurrency market remains volatile, and XRP’s current recovery needs to break above the descending trendline to confirm a genuine trend reversal. With a market capitalization of $119.44 billion and daily trading volume of $6.55 billion, XRP remains highly liquid but susceptible to market-wide shifts in sentiment.

“Until we see a clear breakthrough of the downward trendline, traders should remain cautious,” warns technical analyst Doji. “This remains a tactical play in a still-delicate macro environment.”

For investors watching XRP’s price action, the coming weeks will be critical in determining whether the current accumulation phase will indeed translate into the projected rally toward $2.40 and potentially beyond, or if the broader bearish trend will reassert itself in the volatile cryptocurrency market.

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Mason Drake

Mason has been covering the exciting and fast-pasted crypto space since the early days of Bitcoin. From decentralized finance to NFT trends, he provides deep analysis on where the industry is headed and what it means for investors.

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