XRP Address Growth: A Key Indicator for Future Price Movement
The cryptocurrency XRP is witnessing a remarkable increase in the number of active addresses, a significant on-chain factor that could potentially drive its price beyond the $3 resistance level. As of March 12, 2025, the number of XRP addresses reached an unprecedented 6,870,945, as reported by Glassnode, a cryptocurrency analytics platform, and shared by Ali Martinez on March 14.
Since the beginning of February, there has been a consistent rise in XRP addresses, with the most significant spike occurring from late February to early March. This trend coincides with a period of increased price volatility for the asset, indicating heightened investor interest and activity.
Analyzing XRP’s Price Trajectory
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Despite the expanding network, XRP’s price has experienced fluctuations, largely influenced by prevailing market sentiment. Nevertheless, it has managed to maintain support above the critical $2 threshold. The surge in new addresses suggests a growing investor base, potentially signaling a bullish trend as XRP strives to reclaim the $3 mark.
AI Predictions for XRP’s Year-End Price
To forecast XRP’s price trajectory in light of this new on-chain development, Finbold consulted OpenAI’s ChatGPT-4o. The AI model projected that XRP could trade between $3.50 and $5 by the end of the year, with the possibility of surpassing $6 under optimal conditions.
ChatGPT highlighted that a rise in active addresses is historically linked to price appreciation. A strong rally in the broader crypto market, particularly in Bitcoin (BTC), or a favorable outcome in Ripple’s legal battle with the Securities and Exchange Commission (SEC) could further propel XRP’s price upward.
The AI model emphasized that overcoming key resistance levels at $3 and $3.80 is crucial for sustained price gains. However, potential regulatory challenges or a broader market downturn might restrict prices between $2.50 and $3.
Diverse AI Perspectives on XRP’s Future
In contrast, Finbold’s in-house AI tool, which integrates multiple predictive models, estimated an average XRP price of $2.25 by the end of 2025. For instance, Claude 3.5 Sonnet anticipated a rise to $3.85 by December 31, 2025, attributing this to bullish momentum, technical indicators, and anticipated interest rate cuts encouraging institutional adoption.
On the other hand, Gemini 1.5 Flash 002 presented a more pessimistic outlook, forecasting a drop to $0.65 due to economic uncertainties and market volatility.
XRP’s Technical Analysis and Market Outlook
From a technical perspective, Martinez cautioned that XRP might face a price correction in the short term, potentially offering a buying opportunity. On March 15, he observed that XRP’s TD Sequential indicator signaled a sell on the four-hour chart, suggesting a temporary pullback before a possible rebound.
Key support levels to monitor are $2.30 and $2.20, where buyers might enter the market. Despite potential corrections, XRP remains in an upward trend, with traders considering a buy-the-dip strategy.
Adding to the potential volatility, Ripple plans to release $465 million worth of XRP from its reserve in March, a move that could induce new price fluctuations.
Elsewhere, the crypto analyst known as Egrag Crypto outlined three possible scenarios for XRP. He noted that if the token closes above $2.83, it could indicate bullish momentum, potentially driving the price towards $4.20.
Maintaining above key resistance levels at $2.40, $2.97, and $3.07 could further validate an uptrend. However, a drop below these levels might trigger a decline towards the Fib 0.786 level, potentially forming a bear trap, especially if Bitcoin tests the $70,000 mark.
Egrag Crypto views a deeper drop as a generational buying opportunity rather than a sign of a prolonged bear market.
Conclusion: XRP’s Long-Term Prospects
Overall, XRP is on a short-term bullish path, aligned with the broader recovery in the cryptocurrency market. At the time of this report, XRP was trading at $2.43, marking an increase of over 4% in the last 24 hours and nearly 3% for the week.
In the longer term, XRP’s potential depends on several key factors, including a possible resolution of Ripple’s case with the SEC. Reports suggest that the regulator might aim to conclude the matter soon, especially in the context of a more crypto-friendly regulatory environment.
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