- The Number of small XRP holders has hit a new high amid a massive adoption trend.
- Key ecosystem events are triggering comprehensive network growth.
The XRP ecosystem has gained increasing traction, as indicated by the recent expansion of retail addresses. Notably, the number of retail addresses has recorded its fastest historical growth, according to data analytics platform Santiment.
Spike in XRP Small Wallets
Santiment noted that the number of wallets holding less than 100 XRP has skyrocketed by over 11.6% in just two months. This is the most sustained and rapid small wallet increase recorded by XRP in its 14-year history.
According to Santiment, addresses with fewer than 100 XRP currently control 4.34 million non-empty wallets on the XRP Ledger. This represents about 71.5% of the 6.07 million total wallets on the XRPL network.
The surge in the small wallet address coincides with XRP’s price uptick in the past two months. During this period of rapid wallet growth, XRP increased by 85%, moving from below $2 to $3.39 before paring with some of its gains.
Responding to an inquiry, Santiment said the spike in smaller wallets indicated a fair value in XRP’s price. For context, when small traders rush into an asset that has already outperformed 98% of cryptocurrencies, it usually indicates FOMO and caution. However, for XRP, the growth in retail influx comes amid XRP’s bullish real-world events, suggesting a top signal.
One notable positive event in the ecosystem is the Ripple USD (RLUSD) stablecoin launch. This is in addition to heightened expectations for an XRP Exchange-Traded Fund (ETF) in the United States.
As highlighted in our previous article, six asset managers have submitted XRP ETF applications to the Securities and Exchange Commission (SEC). They include CoinShares, WisdomTree, 21Shares, Bitwise, Tuttle Capital Management, and Canary Capital. Tuttle Capital has proposed a 2x leveraged XRP ETF, while the others submitted drafts for spot XRP ETFs.
Digital Wealth Partners, a financial advising firm, has successfully issued a multi-million-dollar loan with XRP as collateral in a related development. As noted in our earlier post, this loan provides XRP holders access to liquidity without forcing them to sell their holdings.
XRP Technical Analysis and Forecasts
Market analysts expect these unfolding events to spur further upsides. Popular market analyst Egrag Crypto recently predicted that XRP would reach a realistic price of $31. However, at the moment, XRP trades at $3.07, down nearly 1.01% in the last 24 hours.
Technical analysis shows XRP could extend the rally to reach its target of $3.63 if the coin maintains its upward momentum. XRP has managed to maintain its position above important support levels even though it appears to be slowing down.
The 50 EMA provides instant support at $2.88. However, $2.59 could be a buffer against additional downward movement if XRP fails to hold this level. On the upside, resistance remains around $3.50, with a possible breakout paving the way to $4.
