Brief Overview:
– The number of XRP wallets has surpassed 7.2 million, marking the most robust user increase since late 2024.
– Transfers from major holders to exchanges have decreased by 94%, hinting that a sell-off is not imminent.
– A breakout above the double bottom pattern suggests a target price of $4.40, with support now established around $2.90.
Network Expansion Hits Record Levels
The XRP network has achieved a new milestone with its total accounts reaching 7.2 million, the highest number recorded. According to CryptoQuant data, the pace of wallet creation has been consistently rising since mid-2024, indicating growing user interest and participation in the network.
Since August 2024, the creation of new accounts has surged, climbing from under 5.8 million wallets to over 7.2 million. This trend has become more noticeable since November, aligning with a spike in trading activities.
XRP’s price recently peaked at $3.65 before settling at approximately $3.50, marking a 21% increase over the past week. During this period, the activity of large holders has shifted substantially. On July 11, major wallets transferred 43,575 XRP to exchanges, but by July 21, this number fell to just 2,339 XRP, a drop exceeding 94%.
This reduction in exchange transfers indicates that large holders are not preparing to sell. Reduced supply on exchanges during a price increase can suggest a tighter market with fewer active sellers.
Technical Indicators Point to Potential Upside
A well-known analyst notes a double bottom pattern on the 4-day price chart, with a breakout above $2.90. This pattern hints at a potential move towards $4.40, derived from the distance between the support base and the neckline.
The price is currently trading above what was previously resistance, which might now act as a new support level. Traders are observing whether this level will hold during any pullbacks.
Slowing New Wallet Creation Despite Overall Growth
Despite the increase in total wallets, the rate of new address creation has slowed. Recent data shows only 1,598 new wallets, one of the lowest figures in recent months.
This slowdown in new market entry could limit immediate demand, especially if momentum decreases. However, the overall growth in wallets indicates a sustained increase in user engagement with XRP over time.
