XRP tops $2.5 amid rising addresses on XRP Ledger: check forecast

The cryptocurrency market continues to experience choppy price action as Bitcoin has reclaimed the $103k level once again.

Altcoins are also recording mixed performances, with most of them currently in the red.

However, XRP, Ripple’s native coin, is the best performer among the top 10 cryptocurrencies by market cap.

The coin has reclaimed the $2.5 level and could rally higher in the near term.

Canary XRP ETF set to debut on Nasdaq today

XRP is up by 4% in the last 24 hours and is now trading above $2.5 per coin.

The primary catalyst behind this rally is the upcoming launch of the Canary XRP ETF on the Nasdaq stock exchange.

Nasdaq revealed in a SEC filing on Wednesday that it will list Canary Capital Group’s exchange-traded fund tracking the price of  XRP starting today.

The exchange informed the regulator that it certified the Canary XRP ETF, and it will list on Thursday under the ticker symbol XRPC.

The launch on Nasdaq comes after Canary filed the Form 8-A on Tuesday for its XRP ETF.

Other digital asset managers, including Bitwise, 21 Shares, WisdomTree, ProShares, and Grayscale, have also proposed similar XRP ETFs.

XRP active addresses surge, backing bullish outlook

Another major catalyst behind XRP’s ongoing rally is the increase in the number of addresses on the XRP Ledger (XRPL).

The number of active addresses on the network has increased by 40% to approximately 32,000 as of Tuesday from 19,000 on Sunday. 

This increase suggests rising user activity and engagement within the network, which increases the on-chain demand for XRP and results in the price surge. 

Despite that, retail demand for XRP is yet to recover from the October 10 deleveraging event.

Data obtained from CoinGlass revealed that the futures Open Interest (OI) for XRP averaged $3.95 billion on Wednesday, down from $4.11 billion the previous day and $8.36 billion on October 10. 

For XRP’s price to surge higher in the near term, the OI has to increase, as it would indicate that investors have confidence in the coin and the Ripple ecosystem.

 XRP edges higher as bullish trend emerges

The XRP/USD 4-hour chart remains bearish and inefficient, but the coin is close to gaining efficiency thanks to its latest rally.

At press time, XRP is trading above $2.50 after defending the $2.3 support level on Wednesday. 

The RSI of 59 is above the neutral 50, suggesting that the bulls have regained control of the market.

The RSI would need to enter the overbought region for XRP to rally higher in the near term. 

The buy signal maintained by the Moving Average Convergence Divergence (MACD) indicator suggests that XRP’s short-term outlook remains bullish. 

XRP is now approaching the 50-day Exponential Moving Average (EMA) at $2.55.

Surpassing this level would see XRP retest the 100-day EMA at $2.64 before hitting the major resistance zone above $2.8.

However, if the bearish trend resumes, XRP could lose its recent support and retest the next major level at $2.23.

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