Ripple (XRP) Price Punches Above the $2.40 Mark, Targeting $2.70 Resistance

Ripple (XRP) price price punched above the $2.40 mark on Monday February 10, buoyed by renewed market sentiment after a week of volatility

After a week of price volatility largely influenced by the US-China trade war, several crypto assets have shown signs of recovery. Among them, XRP price experienced a mild gain of 7% on Monday as bearish market sentiment subsided.

On-chain data also reveals an interesting trend. Following the US Securities and Exchange Commission’s (SEC) decision to drop all charges against Ripple in mid-January, there has been an unusually high rate of new XRP wallets being created.

Here's a summary of the latest XRP price action and on-chain developments:

1. XRP Price Shows Mild 7% Gain as Bearish Sentiment Subsides

While Bitcoin (BTC) and Ethereum (ETH) faced resistance in breaking past $98,000 and $2,750, respectively, altcoin markets had a strong start to the week.

As reported earlier, investor capital is increasingly flowing into altcoins amid expectations of improved regulatory clarity under the new U.S. administration.

Also, a lack of movement in Bitcoin-related policies, such as strategic Bitcoin reserves, prompted traders to explore alternative crypto assets like XRP.

As you can see in the chart above, XRP price gained 7% since halting its downtrend at the $2.30 level last Friday. This recovery indicates renewed buying interest as investors capitalize on XRP’s growing adoption.

If the current momentum persists, XRP could consolidate above the $2.40 support level, setting the stage for further bullish movements in the coming weeks.

2. Over 200,000 New XRP Addresses Created as SEC Drops Appeal

Performing exceptionally well against BTC and ETH, XRP price also experienced an internal bullish catalyst.

A deeper look at on-chain metrics reveals a significant influx of new users into the XRP Ledger blockchain, coinciding with key market-moving developments.

After the SEC failed to file an appeal against Ripple before the January 15 deadline, all charges were dropped by the regulatory body.

Additionally, former SEC Chair Gary Gensler officially stepped down on January 20, as President Trump's appointed Mark Uyeda as acting SEC chair.

These pivotal events provided a confidence boost for XRP investors, propelling the price to a seven-year high of $3.40 on January 16.

Beyond these regulatory milestones, on-chain data indicates an unprecedented surge in XRP adoption.

As depicted in the CryptoQuant chart above, the number of XRP wallet addresses stood at 6.4 million as of January 14. However, since the SEC’s decision not to appeal, the number of new users has risen sharply, bringing the total to 6.6 million as of February 10.

An increase in total addresses is usually considered a bullish indicator. A growing user base enhances network decentralization and fosters increased demand for XRP as new wallets begin conducting transactions.

Furthermore, this surge in adoption provides XRP with the necessary liquidity and user activity to maintain high support levels or even push toward a new all-time high.

3. XRP Price Forecast: Bulls Targeting $2.70 Resistance

Having gained 7% in the past three days, XRP is currently trading at $2.41 as bullish traders attempt to build momentum.

The price is rebounding from a recent decline, finding support near the $2.40 VWAP level. The Donchian Channels indicate that XRP is recovering from the lower boundary of its trading range at $1.77, with immediate resistance sitting at $2.52.

A decisive breakout above this level could push prices toward the next psychological barrier at $2.70.

The MACD histogram, while still in negative territory, is showing signs of bullish divergence as selling momentum fades.

If the MACD line crosses above the signal line, it could confirm an uptrend, driving further gains. However, bears remain active, with the upper Donchian Channel limit at $3.28 acting as a major resistance zone.

If XRP fails to sustain its upward push, a rejection at $2.52 could see prices retrace toward the $2.00 psychological level. Bulls must defend support to maintain the current trajectory toward $2.70.

1. Why is XRP's price increasing?

Several factors are contributing to XRP's price increase, including a recovery from bearish market sentiment, increasing investor interest in altcoins, and a lack of movement in Bitcoin-related policies.

2. What is the next resistance level for XRP?

The next resistance level for XRP is $2.52, according to Donchian Channel analysis. If prices break out above this level, the next target could be $2.70.

3. How does an increase in XRP addresses affect price?

An increase in XRP addresses indicates growing user adoption, which can lead to higher demand and support for the cryptocurrency's price.