Latest on-chain data shows the Ripple network is expanding as the number of new XRP addresses increases.
According to crypto analyst Ali Martinez, these increases in addresses usually signal a potentially significant price growth.
Is XRP preparing for its next rally?
As reported by ZyCrypto, the surge in new addresses helped drive the price of XRP above the psychological resistance of $0.50, reaching a peak of $0.056 on Tuesday as the XRP Army continue to envison the $10 price point.
Although the increase in addresses could be a bullish signal suggesting the next XRP rally, it’s not a completely reliable indicator.
Investors focus on the outcome of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, alleging that XRP is a Security. Recently, District Judge Annalisa Torres ordered the inclusion of former SEC director William Hinman’s speech in the case documents, where he stated that Ether is not a Security token.
The use of these documents is crucial for Ripple in the case, as it could help the company demonstrate that, like ETH, XRP is not a security token.
Additionally, a victory in the Ripple lawsuit could have significant implications for the price of XRP and the cryptocurrency market as a whole. According to several experts, Ripple and its token are undervalued, considering the company’s reserves exceed four times its market value. Furthermore, Ripple has expressed its desire to go public, generating significant interest from institutional investors.
XRP retreats 7.4%
Today, the price of XRP experienced a 5.4% retreat, according to CoinGecko data, following the recent SEC lawsuit against Binance.US, Binance International, and Binance CEO Changpeng Zhao. The lawsuit alleges that the exchange allowed North American users to use the international platform without regulatory permission to operate an unauthorized security token.
Furthermore, they were accused of using unauthorised user funds, transferring them to other international entities, thus evading federal laws.
However, despite the current decline of XRP, several indicators, such as moving averages, VPVP, and ADX, among others, continue to project a bullish trend on daily timeframes.
Therefore, XRP needs to respect the support zone to maintain its bullish movement above $0.45. If it stays above that zone in the coming days, it could likely target the next resistance at $0.60 in the short term.