Recent on-chain data reveals encouraging developments for the Ripple network, as the number of new XRP addresses continues to grow. According to renowned crypto analyst Ali Martinez, this surge in addresses often indicates the possibility of significant price growth on the horizon.
In a report by ZyCrypto, it was highlighted that the influx of new addresses played a crucial role in propelling the price of XRP above the psychological resistance level of $0.50. As a result, XRP reached a peak of $0.056 on Tuesday, igniting the hopes of the XRP Army, who fervently anticipate the coin’s ascent to the $10 mark.
While the increase in addresses serves as a promising indicator for the next XRP rally, it should be noted that it is not a foolproof measure. Investors remain focused on the outcome of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, which alleges that XRP is a security. The recent inclusion of former SEC director William Hinman’s speech in the case documents, where he affirmed that Ether is not a security token, is pivotal for Ripple’s defense. Ripple aims to leverage these documents to demonstrate that XRP, like ETH, should not be classified as a security token.
Victory in the Ripple lawsuit could have far-reaching implications not only for XRP’s price but also for the entire cryptocurrency market. Numerous experts assert that Ripple and its token are undervalued, considering the company’s reserves exceed its market value by four times. Moreover, Ripple’s plans to go public have generated significant interest from institutional investors.
However, the price of XRP experienced a slight setback of 5.4% today, as indicated by CoinGecko data. This decline follows the recent SEC lawsuit against Binance.US, Binance International, and Binance CEO Changpeng Zhao. The lawsuit accuses these exchanges of allowing North American users to access the international platform without proper regulatory authorization, specifically regarding unauthorized security tokens. Furthermore, they are alleged to have used unauthorized user funds, evading federal laws by transferring them to other international entities.
Despite the current decline in XRP’s price, several indicators, including moving averages, VPVP, and ADX, among others, continue to project a bullish trend on daily timeframes.
Consequently, it is crucial for XRP to maintain its bullish momentum above the $0.45 support zone. If it manages to stay above this level in the coming days, it is likely to target the next resistance at $0.60 in the short term. These positive signs combined with the ongoing developments surrounding the Ripple lawsuit suggest an exciting future for XRP and its investors.