Recent changes in the XRP market situation may indicate a possible price recovery after several weeks of low performance.
XRP Outflow from Exchanges
Data from CryptoQuant shows that XRP reserves on Binance decreased by over 5 billion coins. In the last five days, approximately 8% of the total XRP supply was withdrawn. This significant outflow may significantly impact price fluctuations.
Recovery of XRP Prices
XRP's price dipped to $1.90 on Sunday after a 17% drop from its weekly high. However, since then, the cryptocurrency has recovered to $2.18, representing a 14% gain. This recovery occurred after the price entered oversold territory on the 4-hour chart and showed signs of bullish divergence.
Impact of Government Decisions on XRP
Recent changes in U.S. legislation regarding cryptocurrencies may also affect XRP. Comments from Federal Reserve Chairman Jerome Powell indicating that banks can now conduct cryptocurrency transactions highlight improved liquidity in the crypto industry. However, the active addresses on the XRP ledger have decreased to 7,000 in the last 24 hours, raising questions about demand.
Despite positive signs of price recovery and legislative changes, the current decline in address activity on the XRP ledger may have a certain impact on future demand.
