XRP News Today: XRP's Wallet Creation Drops 80% Since January, But Analysts See $3 Breakout

XRP, a cryptocurrency that has been a subject of intense debate among analysts, is once again in the spotlight. Recent on-chain data has raised concerns about its momentum, with Coin Bureau noting that XRP wallet creation has dropped nearly 80% since January, and daily active addresses declined from 577,000 to just 34,000. These figures have led to claims that confidence in the token may be weakening, and it may not reclaim the $3 level. However, not everyone agrees with this pessimistic outlook.

One of the most vocal responses came from Xoom, a popular voice in the crypto space. Dismissing the pessimistic take, Xoom argued that XRP will not only revisit the $3 level but will likely move higher in this cycle. His confidence is rooted in both relative strength and chart structure, which he believes are more significant than short-term fluctuations in wallet or address activity. Xoom urged observers to compare XRP’s performance to that of other altcoins, describing it as “one of the strongest, if not the strongest alt this cycle,” and emphasized that its technical chart structure is unfolding more cleanly than many of its peers.

Experts are predicting fast breakouts for the asset, as multiple bullish technical patterns are converging. Kenny Nguyen, a prominent crypto pundit, recently explained that the current bear market is the best time to accumulate more XRP, and he has bullish expectations for the digital asset. XRP has also seen a notable increase in whale activity, suggesting a notable move is on the horizon. While temporary dips in usage data may spook some observers, those signals do not necessarily align with the broader trajectory of price action.

Chart structure, which reflects longer-term sentiment and positioning, remains intact, and Xoom expects the bullish momentum from these technical patterns to push XRP past the $3 level. Analysts have revealed that XRP is on the verge of a breakout because there’s no room left for consolidation. Although the drop in wallet creation and active addresses suggests declining retail participation in the short term, XRP thrives with increased institutional adoption.

While XRP may not reach $3 immediately, it is well within reach. Xoom’s post serves as a reminder that different metrics offer different insights, and for those looking beyond short-term volatility, XRP remains a contender for significant upside. The debate surrounding XRP’s future continues, with some analysts remaining skeptical while others, like Xoom, remain optimistic about its potential to reach new heights.