The Number of Active Accounts on the XRP Ledger (XRPL) Hit a Seven-Month High

The XRP ecosystem has been particularly active of late; the number of active accounts on the XRP Ledger (XRPL) hit a seven-month high.

The XRP ecosystem has seen a surge in activity lately, with the number of active accounts on the XRP Ledger (XRPL) hitting a seven-month high.

Starting from just under 10,000 at the beginning of October, the number of active accounts rose and crossed 24,000 by early November.

This increase in activity follows a period of relative calm, highlighting the recent engagement within the XRP community.

The last time that engagement with XRP was this high was back in March. At the time, the price of XRP was rising from $0.6084 to a yearly high of $0.7449.

Such a level of trading activity on the XRPL points to both increasing buyer and seller demand. The account holders will determine the price movement of XRP depending on whether they are buying or selling the token.

Whale Addresses Accumulate 390 Million XRP

Besides the increase in the active accounts, whales have been quite active among the investors. The total of all large XRP addresses holding between 1 million and 1 billion tokens added 390 million XRP, or about $198.9 billion, in the last two weeks.

Data from Santiment shows that these whale holdings increased from 19.6 billion tokens on the 21 of October to 19.9 billion tokens by early November.

This increase in whale holdings may be a sign that whales are starting to trust XRP as a long-term asset.

Whale accumulation usually occurs before a market move as big investors enter the market when they see tremendous growth potential. This buying pattern of the high balance addresses correlates with the increase in the active addresses. It might be providing the base support for XRP price.

XRP Price Holds Above Key Support Level

During these changes in the on-chain data, XRP has remained relatively firm near crucial support levels. Having dipped to $0.53 on October 29, the token later fell to $0.50 before rising to trade above $0.54 at the time of this writing.

This stability around the $0.50 mark shows that investors are keen on keeping the price from going too low in the volatile market. Conversely, long term performance of XRP has not been very impressive. It is still down roughly 23% this year so far.

However, the higher whale buying and selling and higher account exercise point to the restored traders’ confidence. Traders are keeping an eye on the possibility of these values returning to positive numbers.

Are they on the path to becoming a long-term trend or if other forces in the market will negatively affect the altcoin. The increase in the number of receiving accounts which currently stands at 48,628 does boost short-term outlook for XRP.

In the past, more activity on the receiving accounts has been followed by price rises. For instance, in March, the XRP price reached its yearly high.

Furthermore, MACD has also given buy signal for the XRP/USD in the 4-hour analysis, as MACD line has crossed above the signal line. This crossover indicates that the buyers are in control and this has put the price up.

The larger green bars on the histogram also indicate this bullishness as they show a trending move away from the baseline. This corresponds to enhanced involvement of buyers in the market.

Moreover, the histogram has expanded showing that the difference between the MACD line and the signal line is increasing, which is an indication of a rising bullish trend. This may lead to further price hikes if the trend is to be continued. Holders and speculators may now look forward to further rise in the prices.