XRP traders are eyeing a potential opportunity as market signals shift. A top crypto analyst points to a buying range forming. Moreover, on-chain data reveals a sharp decline in network activity. This combination has sparked discussions about the coin’s next move.
Crypto analyst Bitcoin Buddha shared insights on X via his handle. He noted XRP’s past surge from $0.58 to $3.40 between November and December 2024. Now, the price hovers around $2.03, down from its peak.
He described the current range as a “clean DCA opportunity” for investors. Bitcoin Buddha predicts a possible climb to a new cycle high if momentum builds.
Current market conditions are challenging, but there’s hope for a bullish turnaround. $XRP rose from $0.58 to $3.40 in no time, and it seems to be entering a buying range again. Clean DCA opportunity 👀
We might see a new peak this cycle.
NFA – DYOR pic.twitter.com/fmCG1qdX4w
— Bitcoin Buddha (@Bitcoin_Buddah) February 28, 2025
His accompanying chart analysis supports this view. XRP trades within a descending wedge on the daily timeframe. This pattern often signals a bullish breakout. A close above $2.72 could push the price toward $3.30 or even $3.99. However, he cautioned that a drop below $2.00 might send it to $1.27.
Bitcoin Buddha’s chart details key levels to monitor. Resistance sits at $2.72 and $3.30, with $3.99 as a potential ceiling. Support holds at $2.00, a psychological threshold for buyers. A break below risks a slide to $1.27, a historical stronghold. Volume spikes will likely confirm any breakout from the wedge.
He emphasized the descending wedge’s bullish potential. Traders need a daily close above $2.75 for confidence. Increased buying volume would seal the deal, he suggested. For now, XRP remains at a crossroads.
Read also: We Asked AI to Predict XRP Price for March – Top Altcoin to Buy Now?
XRP On-chain Activity Plummets
Meanwhile, analyst Ali, posting as @ali_charts on X, highlighted a troubling trend. He reported that XRP’s network activity has halved since December.
Active addresses fell from 202,250 to 101,169 as of his tweet. This 50% drop suggests reduced user engagement on the blockchain. Analysts often link such declines to waning interest or consolidation phases.
$XRP network activity has declined by 50%, dropping from 202,250 active addresses in December to just 101,169 today! pic.twitter.com/UWJDVDtram
— Ali (@ali_charts) February 27, 2025
Despite this, some traders see it differently. Lower activity could indicate a market reset before a rally. Bitcoin Buddha’s bullish outlook contrasts with Ali’s data, creating a nuanced picture. The interplay between price action and on-chain metrics keeps the community watching closely.
The crypto market stays volatile, but XRP shows signs of life. Bitcoin Buddha sees the current price as a strategic entry point. Ali’s data tempers optimism with a reality check on network use. Traders must weigh both factors as February 2025 unfolds. A breakout could redefine XRP’s trajectory this cycle.
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