Active Addresses Hit Record High as XRP Price Eyes $1.80
The XRP price has retreated from its recent high of $1.70, with the market digesting the latest changes in the macroeconomic backdrop. This altcoin is currently retesting a former resistance area at $1.32, which may have turned into support ahead of this week's jobs report in the United States. The yearly losses for XRP have returned to 28% due to this latest decline, while trading volumes have subsided slightly but remain higher than they were a month ago at $2.7 billion, accounting for 3.2% of the asset's circulating market cap.
Market Sentiment Remains Bullish
Despite the necessary pullback, market sentiment remains bullish, as reflected by the Crypto Fear and Greed Index. This gauge currently sits at 69, down from a recent peak of 80. At this level, it indicates that market participants are still in "Greed" mode, following the latest regulatory and macro tailwinds. The Crypto Fear and Greed Index is a widely followed metric that gauges market sentiment by analyzing various factors, including market volatility, trading volumes, and social media activity.
Regulatory and Macroeconomic Backdrop
The recent increase in the odds of a rate hike in September, as indicated by FedWatch, has contributed to the selling pressure across the crypto market. The Chairman of the Federal Reserve, Kevin Warsh, has expressed concerns about inflation, which has nearly doubled the Fed's target in the last 12 months. As a result, central bankers are expected to remain hawkish when it comes to interest rates. However, Wall Street seems to be confident that this situation will not put a lid on crypto prices, as net inflows to exchange-traded funds (ETFs) linked to XRP have been positive for 11 days in a row.
ETF Inflows and On-Chain Data
In August, net inflows to XRP ETFs closed at $159 million, the highest monthly add since December last year. Meanwhile, investors poured another $14 million into these vehicles during the first day of September despite the token's retreat. On-chain data from Santiment indicates that active addresses within the XRP Ledger have jumped to their highest level on record. The 7-day moving average for daily addresses currently sits at 1.34 million, a 10% increase compared to the previous all-time high of 1.22 million the network experienced in March 2025. This is a clear indication that market participants are positioning for a big move ahead.
Technical Analysis and Price Outlook
The daily chart shows that XRP is retesting a former resistance at $1.32 from above. This should be a strong demand zone for the token now. Hence, we could expect a rebound off this level. This price level coincides with the 200-day exponential moving average (EMA), a key technical indicator that a large group of traders watches closely. If the price breaks below this mark, we could expect a decline to $1.23, meaning a 7% downside risk. However, if volumes pick up and the price starts rallying off this area, we still envision a move to $1.80 in the mid-term. The risk-reward ratio for a long position at this point is quite attractive at around 6x, provided that this $1.32 support level holds as expected.
What to Watch Next
The upcoming jobs report in the United States will be a key event to watch, as it may impact the market's perception of the economy and, subsequently, the Federal Reserve's interest rate decisions. If the report shows a strong labor market, it could lead to increased hawkishness from the Fed, which may put downward pressure on the XRP price. On the other hand, if the report shows a weak labor market, it could lead to increased dovishness from the Fed, which may put upward pressure on the XRP price. Additionally, investors will be watching the on-chain data and ETF inflows for signs of increased market participation and sentiment.
