How high can XRP rally after a 654.71% activity surge? Assessing…

$XRP saw a surge in activity on its network, with Active Addresses rising 654.71%. That growth added a new layer to the price recovery by showing stronger network participation.

The Total Active Addresses increased from 47,180 to 356,070, signifying a significant growth in network engagement.

This rapid growth strengthened the activity supporting $XRP’s recovery rather than leaving price gains isolated from network usage.

Besides, the surge in participation also provided a larger potential user base for engaging with $XRP in the recent price rally.

However, Active Addresses alone could not confirm whether participants were accumulating $XRP or transferring existing holdings.

The token’s price action added some context as $XRP’s price surged significantly with the expanding network engagement.

Source: X

Why are top traders betting on $XRP?

Bullish positioning by top traders on Binance complemented the exceptional growth in $XRP network activity. Top traders’ positioning in long accounts was 74.26%, compared to 25.74% in short accounts.

The Long/Short Ratio came in at 2.89, indicating a significant imbalance in the exposure of larger Binance traders favoring the bulls. Notably, long positioning was dominant throughout the recovery period, despite the fluctuations of the account ratio.

That positioning added speculative support as network participation increased and $XRP broke through nearby resistance. However, concentrated long exposure also increased the risk of a sharper reversal if leveraged traders began closing positions.

Still, positioning data favored the buyers as almost three-quarters of the tracked top accounts held long exposures.

Combined with expanding addresses, traders had positioned for further upside rather than aggressively fading $XRP’s recovery.

Source: CoinGlass

Is $XRP’s NVT Ratio supporting the recovery?

In addition to trader positioning, $XRP’s network valuation metric brought an additional positive piece to the positive demand outlook. The NVT ratio dropped 59.72% over 24 hours reaching 109.5728, according to CryptoQuant.

A decline in the NVT tends to indicate that transactions are increasing at a higher rate compared to the network’s value over the observed timeframe.

In this case, the decline aligned closely with the dramatic increase already recorded across $XRP’s active addresses.

Both the metrics pointed toward a stronger network utilization as price recovered, reducing reliance on speculative positioning alone. Importantly, the NVT decline solidified the network image without having to see $XRP devalue as activity increases.

However, the ratio remained positive and required continued transaction activity to preserve its improving direction.

Persistent network usage would keep supporting $XRP’s valuation backdrop as traders assess whether the recent recovery could extend further.

Source: CryptoQuant

Breakout opens the road toward $2

Price action confirmed the breakout by breaking above the important $1.4658 resistance level during $XRP’s sharp recovery.

As of press time, $XRP was trading around $1.5235, after briefly touching the $1.7057 resistance level on the daily chart.

Most importantly, the buyers had inverted $1.4658 from overhead resistance to the closest level supporting the breakout structure. The DMI reinforced that price move, with +DI reaching 47.64 while -DI had fallen to 5.06.

Meanwhile, ADX reached 44.81, indicating the directional move had developed considerable strength during the breakout. A successful defense of the $1.4658 support level would keep $1.7057 within reach during another upward attempt.

Failure there would expose the $1.3000 lower support and weaken the breakout despite the strong network and bullish trader positioning.

However, the current conditions favor another $1.7057 challenge before hitting $2, although buyers would need sustained demand to overcome that resistance.

Source: TradingView

Final Summary

• $XRP’s 654.71% Active Address surge strengthened the network backdrop supporting its recovery.
• Top traders held a 2.89 Long/Short Ratio, showing strong bullish positioning.

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