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XRP has seen some wild price action over the past few days and weeks, with investors sending the previously embattled token rocketing by over 300% following its break above the long-held trading range between $0.20 and $0.30.
The selling pressure in the mid-$0.60 region has proven to be quite intense in the past and may continue hampering its price action in the days and weeks ahead as it tries to surmount this.
This breakout isn’t the only thing that helped the crypto rally higher, as the upcoming Spark airdrop was also a catalyst for this push higher.
Because many investors now look favorably upon airdrops due to the success of that conduct by Uniswap, the one being sent to XRP holders in the coming weeks likely helped drum up some serious buying activity.
One analytics firm spoke about this in a recent tweet, explaining that while XRP is gaining some ground against Bitcoin, its price is being driven higher by an influx of daily active wallet addresses interacting with the token and with the network.
This is a sign of fundamental strength that may help boost the cryptocurrency’s price action going forward.
XRP Struggles to Break $0.60
At the time of writing, XRP is trading down just under 3% at its current price of $0.60. This marks a notable surge from where it was trading just a couple of days ago when it dipped to lows of $0.54.
Where it trends in the mid-term may depend largely on Bitcoin and Ethereum, as their general trends have typically played a large role in that of XRP and other major altcoins.
Analytics Firm: Daily Active Address Count Remains High as Airdrop Nears
Despite XRP not gaining enough momentum to break above $0.60, the number of users interacting with the token and the network remains incredibly high.
They noted that the cryptocurrency’s daily active address count is stable following its sharp peak seen a couple of weeks ago.
“XRP is making up more ground on BTC in 2020 with a modest +5% in the past day. An encouraging sign is that Ripple’s daily active addresses have stayed significantly higher than its year average since spiking two weeks ago.”
Image Courtesy of Santiment.
If this metric remains high as the Spark airdrop approaches, there’s a strong possibility that XRP will continue to gain momentum heading into this highly anticipated event.
Featured image from Unsplash. Pricing data from TradingView.