Overseas crypto media CoinGape reported that as Ripple (XRP) continues trading around $1.50 this week, market attention is focusing on the token amid a sharp increase in network activity and improving cryptocurrency market conditions.

XRP Shows Strength Alongside Market Recovery

According to CoinGape, XRP recorded $1.49, up 1.32% over the past 24 hours. While this fell somewhat short of the broader cryptocurrency market's gains over the same period, XRP's price jumped 50% over the past week as the market recovered. The global cryptocurrency market capitalization rose 2.47% to $2.68 trillion.

CoinGape also reported that market sentiment and institutional investment inflows have improved. Bitcoin rose more than 20% across three trading sessions last week and briefly surpassed $80,000 before pulling back. Its 24-hour trading volume surged 78%. CoinGape reported that trading activity increased significantly as investors watched for the possibility of Bitcoin reclaiming $80,000. Bitcoin exchange-traded funds (ETFs) saw large inflows for seven consecutive days, which CoinGape cited as a trend showing continued institutional demand for Bitcoin. Ethereum also rose, trading between $2,425 and $2,530 — its highest price level in about seven months, according to CoinGape.

XRP Active Addresses Surge 654.71%

Citing data from analyst Ali Charts, CoinGape reported that the number of active addresses on the XRP network surged 654.71%, from 47,180 to 356,070 — a figure showing a substantial increase in participants using the XRP Ledger.

Ali Charts stated on August 24 (local time) that XRP network activity had grown significantly, noting that a spike in active addresses generally indicates rapidly rising network participation and often appears alongside periods of increased price volatility. CoinGape explained that such a surge means the number of users on the network grew substantially during the measurement period. However, it added that while similar activity increases have sometimes been followed by greater price volatility, they do not necessarily lead to sustained price gains.

Mixed Trends in the Derivatives Market

CoinGape reported mixed trends in the XRP derivatives market, with futures exposure declining while options participation increased sharply.

According to CoinGape, citing data from CoinGlass, total derivatives volume fell 8.19% to $807 million, indicating reduced short-term trading activity on major exchanges. Open interest, however, rose 0.35% to $3.73 billion, which CoinGape interpreted as traders maintaining their leveraged positions rather than closing them.

Options volume surged 298.79% to $36.7 million. According to CoinGape, this reflects growing demand for trades aimed at reducing price risk as well as trades targeting price movements. Options open interest also rose 25.73% to $140.74 million, which CoinGape said shows traders are preparing for potential future price swings. Despite an overall decline in derivatives market activity, XRP traders are becoming more selective in their trading targets.

Technical Trends and Outlook

According to CoinGape, at the time of writing, XRP traded at $1.4897, up 1% over the past four hours. After rising strongly from around $1, XRP has consolidated near $1.49, but resistance around $1.50 continues to block further gains.

The relative strength index (RSI) stood at 59.94, which CoinGape described as a figure showing that the current uptrend remains in positive territory. However, the moving average convergence divergence (MACD) shows the MACD line below the signal line with a negative histogram. CoinGape said this pattern suggests XRP may consolidate further before attempting another breakout.

CoinGape forecast that on the four-hour chart, if XRP closes above $1.50, it could regain part of its upward momentum and move toward its first target of $1.60. It also projected that if demand continues, the upside range could extend to $1.70.

Conversely, CoinGape predicted that if XRP fails to break above $1.50, it could be pushed down to the nearest support level at $1.40. It added that a drop below $1.40 could open the way to the next downside target of $1.30.

CoinGape assessed that as long as XRP's price stays above $1.40, the overall price trend remains on the bullish side. It added that traders can confirm the next price direction through the movements appearing around the $1.50 level.

[This article is by no means investment advice. The content may only reflect opinions, so please do not use it as a reference or material for investment decisions. All investments are made at each individual's own judgment, and the final responsibility lies with the investor. This publication bears no responsibility whatsoever.]