As a result of new partnerships and a new round of trading volumes, XRP price is edging closer to $2, which will propel the altcoin to a new $2024 price high.
XRP price reached a new year-to-date high of $1.68 as the altcoin continued to form a higher high (HH) pattern. This week, the crypto asset has experienced a 40% increase, and it has the potential to surpass BNB to become the fifth-largest cryptocurrency in the market.
In November, tactive XRP accounts increased by 100%
Although the XRP price has increased by 232% in the past 30 days, its onchain metrics have also shown a positive resurgence. According to data from xrpscan, the number of active accounts or distinct senders on the XRP network increased from 15,592 on November 1 to as high as 47,044 on November 16.
In November, the average number of active accounts doubled, increasing from approximately 12,000 to 25,000. Similarly, the XRP ledger experienced a substantial increase in the number of new accounts activated in November, suggesting that the network has attracted many new users.
Ripple’s strategic partnership with Archax to introduce a tokenized money market fund on the XRP ledger has also contributed to the bullish sentiment surrounding XRP.
Furthermore, Bitwise, a crypto index fund manager, announced on November 7 that it would rebrand its European XRP ETP, providing European investors with XRP exposure through a tangibly backed product.
XRP Price target $2, distribution is the likely outcome
The most recent breakthrough of XRP resulted from a bullish breakout from a bull flag pattern. The formation of a new higher high in the chart suggests a bullish continuation, which presents the potential for additional upward movement.
The immediate target for XRP is between $1.95 and $2.05, composed of the market top of its previous bull runs at $1.97, which will serve as overhead resistance, according to the Fibonacci extension rule from its trend swing low at $1.
Mikybull, an independent crypto analyst, also referenced the potential for a $2 target and stated,
“$XRP 2017 kind of rally vibes. Hit $2, experience a pullback, and then continue its vertical hated rallies to a new cycle top of probably $10.”
Nevertheless, it is crucial to observe that its mid-term and long-term charts demonstrate distinct adverse divergences.
Since November 16, there has been an inverse correlation between price and trading volume, another critical analysis. XRP is currently in a distribution phase, during which market traders may consider selling.
Consequently, the likelihood of an adverse market reversal is elevated, as trading volumes have been at their lowest level since November 10 over the past three days.