XRP is showing signs of growing investor confidence after the U.S. Securities and Exchange Commission (SEC) dropped its legal battle against Ripple. This decision has boosted optimism among XRP holders and is driving a surge in activity on the network.
XRP Active Addresses Jump 400% From 310K To 1.2M In March
XRP’s network activity has grown sharply. The number of active addresses has risen from around 310K in February to over 1.2 million in March. This represents a 400% increase in user engagement. This means more users are actively sending or receiving XRP.
Additionally, large holders, often called “whales,” have been steadily increasing their holdings. Wallets holding between 1 million and 10 million XRP have added 10% more tokens in the past two months. These wallets now collectively hold 5.81 billion token, worth about $14 billion.
However, the largest whale wallets (those holding 10 million to 100 million token) have shown mixed behavior. Some are accumulating more tokens, while others are selling.
At the same time, XRP holders seem to be holding onto their coins rather than selling, even during price increases. This is shown by the drop in “dormant circulation,” a measure of how many old tokens are being moved. When fewer old coins are moving, it often means investors are confident in future price growth.
Funding Rates Negative Despite Strong Spot Market Optimism
Despite growing optimism in the spot market, XRP’s derivatives market tells a different story. Funding rates — which show how traders are betting on future price moves — have turned negative. This suggests that traders are paying to hold short positions, expecting prices to fall, or at least stay weak in the short term.
Over the past 24 hours, the token saw $13.86 million in futures liquidations, including $11.68 million from long positions and $2.18 million from shorts. This shows that many traders bet on rising prices but were forced to exit when the market dropped.
Ripple CEO Hints at XRP ETF in 2025
Ripple CEO Brad Garlinghouse shared his view on a possible XRP exchange-traded fund (ETF). He said he believes an ETF could launch in the U.S. by the second half of 2025.
The SEC recently delayed decisions on several XRP ETF applications from firms like Bitwise, Franklin Templeton, and 21Shares. Furthermore, Garlinghouse believes XRP will eventually be part of the U.S. digital asset investment.
XRP Technical Outlook — Watching Key Levels
XRP is currently trading around $2.40 after facing resistance near $2.60. The remittance-focused token has seen a price retracement of 1.08% in the past 24 hours. The recent price rejection at $2.60 suggests that the token is struggling to break above a key resistance level.
XRP has been trading within a descending channel for the past few months. The latest breakout attempt suggests a possible reversal if buyers maintain momentum. However, the Relative Strength Index (RSI) stands at 50.58, indicating neutral market conditions. If the token fails to hold above the upper boundary of the descending channel, it may drop to its next support at $1.96.
