XRP (XRP) rebounded to a yearly high at $1.68 after the altcoin continued to form a higher high high (HH) pattern. The cryptocurrency asset is up 40% this week, potentially displacing BNB to become the fifth-largest cryptocurrency on the market.
XRP 4-hour chart. Source: Cointelegraph/TradingView
XRP active accounts increased 100% in November.
XRP price is up 232% in the last 30 days, but XRP’s on-chain indicators also show a positive resurgence. According to data from xrpscan, the number of active accounts or unique senders on the XRP network increased from 15,592 on November 1 to 47,044 on November 16.
Number of active accounts on the XRP ledger. Source: xrpscan
The overall average of active accounts doubled in November, rising from about 12,000 to 25,000 this month. Likewise, the number of new accounts activated on the XRP ledger recorded a significant surge in November, believed to be driving an influx of new users to the network.
The bullish sentiment for XRP was also captured in Ripple’s strategic partnership with Archax to launch a tokenized money market fund on the XRP ledger.
Additionally, cryptocurrency index fund manager Bitwise announced on November 7 that it would rebrand its European XRP ETP to provide European investors with XRP exposure through a physically backed product.
Related: Alt season delayed due to lack of new retail capital – Joo Ki-young
XRP is targeting $2, but overbought conditions indicate a “distribution”.
XRP’s recent breakout occurred after the price broke out of a bull flag pattern. The formation of a new high indicates a continuation of the bullish trend on the chart and opens the possibility for further upside.
XRP 4-hour chart. Source: TradingView
Following the Fibonacci extension rule of the trend low of $1, XRP’s immediate target lies between $1.95 and $2.05, with the previous bull market high of $1.97 serving as overhead resistance.
Independent cryptocurrency analyst Mikybull also mentioned the possibility of a $2 target, saying:
“$XRP 2017 is in a rally mood. It will reach $2, experience a downtrend, and then continue its vertical hate rally, possibly reaching a new cycle high of $10.”
However, it is important to note that there are clear bearish differences on the medium-term and long-term charts.
XRP 1 day chart. Source: TradingView
Another important analysis is that since November 16th, price and volume have shown an inverse correlation. This indicates that XRP is experiencing a distribution phase where market traders are potentially looking to sell.
Therefore, considering that the trading volume for the past three days was the lowest since November 10, the possibility of a bear market reversal increases.
Related: Will XRP Price Plunge Again?
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.