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XRP Bullish Signal: Address Activity Spikes To Historical Levels
On-chain data shows the XRP active addresses metric has spiked to historical levels recently, a sign that may turn out to be bullish for the asset.
XRP Daily Active Addresses Has Observed An Uplift Recently
According to data from the on-chain analytics firm Santiment, address activity on the network reached its second and third-highest values ever during the last couple of days.
The “active addresses” indicator tracks the total number of unique addresses that are participating in some kind of transaction activity on the XRP blockchain daily. This metric accounts for both senders and receivers.
As the indicator only measures the unique number of addresses, it means that even if there are some addresses making multiple transfers on the network in a single day, their contribution toward the metric remains only one unit.
Unique addresses can be thought to be the same as the unique users visiting the blockchain, so the active addresses indicator can tell us about the degree of traffic that the network is observing at the moment.
When the value of this metric is high, it means that a large number of addresses are taking part in transfers on the chain right now. Such a trend suggests that traders are active in the market currently.
On the other hand, low values imply the network isn’t observing that much activity right now. This kind of trend can sometimes be a sign that there isn’t much interest in the cryptocurrency among general investors.
Now, here is a chart that shows the trend in the Bitcoin daily active addresses over the last few months:
Looks like the value of the metric has been quite high in recent days | Source: Santiment on Twitter
As shown in the above graph, the XRP active addresses had been at relatively low values during the past few weeks, but in the last couple of days, the indicator has suddenly burst into life.
Around two days ago, the metric saw its second-highest-ever daily spike, registering a value of around 490,000. This means that 490,000 unique addresses had been interacting on the chain during this surge.
Yesterday, the metric observed a slowdown and has since dropped down to a value of 281,000. This level, however, is still the third largest in the history of the cryptocurrency, meaning that activity still continues to be at historically high levels right now.
The only instance where a higher value than these spikes was observed (that is, the all-time high of the indicator) was back on the 18th of March. In the chart, Santiment has highlighted this particular surge.
Interestingly, the price of XRP went on to rally around 45% following the occurrence of this spike, suggesting that the high user activity may have provided the fuel for the rise.
Currently, as users continue to remain highly active on the network, the price is also going up. It’s unclear, though, whether this ongoing surge will grow into anything like what was seen earlier in the year, but it’s an optimistic sign nonetheless.
XRP Price
At the time of writing, XRP is trading around $0.5, up 8% in the last week.
The coin seems to have been going up recently | Source: XRPUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net