- XRP's price surged over 10% from $2.27 to $2.51 following optimism about potential U.S. tariff rollbacks on Canada and Mexico.
- Active XRP addresses skyrocketed 620% in the past week, jumping from 74,589 to 462,650, indicating growing investor interest and accumulation.
- XRP is testing crucial resistance around $2.51 after rebounding from the 100-day SMA support level, making this a key inflection point.
- A breakout above current resistance with strong volume could target $3.50-$3.75, while a daily close above $2.58 may signal the start of bullish recovery.
Date: Wed, March 05, 2025 | 02:28 AM GMT
The cryptocurrency market is showing signs of recovery after experiencing one of the sharpest sell-offs on Monday and Tuesday. The recent downturn was largely driven by U.S. President Donald Trump’s tariff-related policies, which triggered panic selling across major assets, including Bitcoin (BTC) and XRP.
However, a potential reversal is in play as market sentiment improves. The key catalyst behind today’s recovery is a statement from the U.S. Secretary of Commerce, hinting that Trump may roll back tariffs on Canada and Mexico later today (Wednesday).
This news has injected optimism into the market, pushing XRP’s price up by over 10%, from a 24-hour low of $2.27 to its current level of $2.51.
On-Chain Metrics Soar
Despite the recent crash, XRP investors appear to be seizing the opportunity to accumulate at lower levels. According to crypto analyst Ali Martinez, on-chain data reveals that the number of active XRP addresses has surged by an astonishing 620% in the past week, jumping from 74,589 to 462,650.
Such a massive spike in network activity often indicates growing investor interest and could be an early signal of a potential bullish reversal.
Is a Bullish Recovery in Sight?
The daily chart shows that XRP is testing a crucial resistance zone (highlighted in red) around $2.51 after rebounding from the 100-day Simple Moving Average (SMA), which has acted as a strong dynamic support. This level is a key inflection point—whether XRP breaks above it or gets rejected will determine the next major price movement.
A successful breakout above this resistance zone, supported by strong trading volume, could fuel a rally toward the upper resistance of the ascending channel, targeting $3.50–$3.75. Such a move would confirm renewed bullish momentum and potentially mark the beginning of an extended uptrend.
The MACD currently suggests that bearish pressure is still in play, but there are early signs of a possible crossover. If the MACD flips bullish, it could confirm a trend reversal, further strengthening the case for an upside breakout.
For now, traders should closely monitor XRP’s daily close—a strong finish above $2.58 could signal the start of a bullish recovery, while another rejection might delay upside momentum.
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