XRP Active Addresses Hit Record High Amid ETF Inflows

XRP active addresses have reached a record high, with the 7-day moving average for daily addresses rising to 1.34 million, according to Santiment. This figure represents a 10% increase over the previous all-time high of 1.22 million recorded in March 2025, signaling that market participants are positioning for a potential move.

The token has retreated from its recent high of $1.70, currently retesting a former resistance area at $1.32 that may now function as support. This technical level coincides with the 200-day exponential moving average, a key indicator closely watched by traders. Yearly losses have widened to 28% following this decline, though trading volumes remain higher than they were a month ago at $2.7 billion, which accounts for 3.2% of the asset's circulating market cap.

Macro factors continue to influence the asset's trajectory. Data from FedWatch indicates that the odds of a rate hike in September have increased from around 39% to 66%, as Federal Reserve Chairman Kevin Warsh appears unwilling to let inflation run hotter. US prices have increased at a pace nearly double the Fed's target over the last 12 months, leading to expectations that central bankers will remain hawkish on interest rates. This stance has contributed to increased selling pressure across the crypto market.

Despite the macro headwinds, institutional interest remains strong. Net inflows to exchange-traded funds (ETFs) linked to XRP have been positive for 11 consecutive days. In August, these inflows totaled $159 million, marking the highest monthly addition since December of the previous year. Investors added another $14 million during the first day of September, even as the token's price retreated.

Market sentiment remains bullish, with the Crypto Fear and Greed Index sitting at 69, down from a recent peak of 80. This level indicates that participants are still in "Greed" mode, supported by recent regulatory and macro tailwinds.

Technical analysis suggests that holding above the $1.32 support level is critical for confirming a bullish outlook. If the price breaks below this mark, analysts expect a decline to $1.23, representing a 7% downside risk. Conversely, if volumes pick up and the price rallies from this area, a mid-term move to $1.80 is envisioned. The risk-reward ratio for a long position is estimated at approximately 6x, provided the $1.32 support holds.