TLDR

• XRP weekly active addresses have surged to a record high of 1.15 million
• XRP price dropped to $2.19, testing a multi-month support level of $2.14
• Short positions have increased with negative funding rates, raising short squeeze potential
• A significant $297 million bearish leverage cluster exists at the $2.70 resistance level
• Transaction activity has skyrocketed to $5 billion within 24 hours with wallet activity increasing by 600%

 

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Ripple’s XRP is showing mixed market signals as network activity reaches all-time highs while price action remains under pressure. The cryptocurrency is currently trading at $2.19, representing a 6% drop over the past 24 hours.

Data from analytics platform Santiment reveals that weekly active XRP addresses have surged to a record high of 1.15 million. This marks an unusual pattern where network usage is increasing despite downward price momentum.

Market analyst ScottMelker reported that XRP transactions have skyrocketed to $5 billion within a 24-hour period. At the same time, wallet activity has increased by more than 600%.

XRP TRANSACTIONS SKYROCKET AS ACTIVITY HITS $5 BILLION IN 24 HOURS$XRP transfers topped $5B in a single day, with wallet activity surging over 600%.

Big money is moving—something is brewing with XRP. 👀

— The Wolf Of All Streets (@scottmelker) March 9, 2025

The surge in active addresses and transaction count may indicate growing interest among traders. However, this activity has not yet translated to positive price action.

XRP has dropped to retest a multi-month support level at $2.14. This price point has served as a bounce zone previously, but continued selling pressure could breach this critical level.

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Technical indicators show mixed signals for XRP. The MACD line has crossed below the signal line, forming a bearish signal that may push prices lower.

The Stochastic RSI suggests XRP may be in oversold territory. This condition could point to seller exhaustion and potentially trigger a price reversal in the near term.

Data from Coinglass reveals a massive increase in short positions on XRP. Negative funding rates indicate traders are betting on further price drops.

If negative funding rates persist, the risk of a short squeeze increases. A sudden price recovery could force short sellers to close positions, potentially accelerating upward momentum.

For XRP to avoid dropping below the $2 psychological level, it needs to overcome key resistance at $2.60. A decisive breakout above this mark could open the path for a rally past $3.

The bearish sentiment in the XRP derivatives market is clear, with short leverage positions ($372 million) far outweighing long positions ($114 million). This means bearish sentiment accounts for about 76.5% of leveraged positions.

A closer look at the liquidation map shows $297 million in short contracts concentrated at the $2.70 mark. This represents a major hurdle for bulls in any recovery attempt.

If XRP approaches $2.70, bears could increase short positions or trigger liquidations to suppress upward momentum. This creates a temporary resistance zone making it hard for bulls to push toward $3.1.

For risk-averse traders, waiting for confirmation of a breakout above $2.70 before entering long positions might be prudent. A decisive move above this resistance would signal a shift in market sentiment.

The broader crypto market faces headwinds from macroeconomic factors. The recent U.S. Non-Farm Payrolls report has led to capital outflows from risk assets like XRP, with the 10-year U.S. Treasury yield reaching 4.3%.