Recent reports recently announced that the number of active addresses on the XRP network had declined. Crypto analyst Ali Martinez, for instance, shared on April 19 that the number of newly created XRP addresses had declined over the last one month. This number dropped from 5,200 to just 2,900. 

However, the network activity of XRP has experienced a significant boost. The number of active addresses is facing a massive resurgence, signifying a twist of events. This resurgence in active addresses comes despite a lackluster performance by XRP over the last one month. It also depicts that enthusiasts have not lost trust in the potential of XRP, prompting an XRP rally towards $2.70. 

Active Addresses on XRP Rise by 67.50%

Despite facing a decline recently, XRP’s network activity has flipped to the upside. As per the post on X by Ali Martinez earlier on April 22, data on Glassnode shows that the number of active wallet addresses is increasing. Notably, it has pumped from 27,352 to 40,366 in recent times. 

This increase marks a significant pump of 67.50%. Furthermore, this shows that XRP enthusiasts still believe in XRP as a solution for cross-border payments. The resurgence of XRP’s active wallet address is quite unexpected as the token lacked momentum in its Easter price performance. 

Nonetheless, the rise in network activity can still be considered a bullish sign. Historically, the rise in the number of wallets on a network suggest that more users are using the network for their transactions. This can serve as a significant boost for the price of Ripple moving forward. 

XRP Consolidates Above $2 as Bullish Momentum Builds

As of this writing, XRP is trading at $2.10 as per the 4-hour chart on TradingView. The current price performance shows continued consolidation between $2.0 and $2.20 for the last 10 days. However, the coin could be primed for a breakout as the bullish momentum builds. 

The Relative Strength Index (RSI), for instance, shows that XRP is gaining bullish momentum. XRP’s RSI currently sits at 56.19, just above the neutral point but with a bullish bias. Additionally, the RSI has risen from 51.93 to the current level over the last 4 hours, hence shows potential for further upswing. 

If the RSI climbs above 60 and towards 70, it could signify a potential upward XRP price movement. However, buyers must support the upswing for the bullish momentum to hold. A drop towards 50 could signify continued consolidation while a drop below 50 could suggest a shift in the trajectory of Ripple.

Analyst Predicts XRP to $2.70 After a Bullish Technical Formation

Besides experiencing a surge in active wallet addresses, Ripple has also experienced a bullish pattern. According to Ali Martinez, the price recently formed an inverse head and shoulder pattern, which is often considered bullish. Formation of this pattern suggests a potential rally is on the horizon. 

Following this pattern formation, Ali has predicted that the price could rally to $2.70. “XRP appears to be forming an inverse head and shoulders pattern, signaling a potential bullish breakout toward $2.70,” his post read.   

Fueled by the rising network activity as well as the bullish technical formation, this threshold is not unachievable for the Ripple-backed coin. Furthermore, the expected XRP ETF approval by the SEC could back a rally to $2.70. But, investors must keep watch of Ripple’s price movement as well as technical indicators to determine the direction of the price in the coming trading sessions.