XRP has surged more than 7% in the last 24 hours, bringing its market capitalization close to $150 billion. This sudden rise in price has attracted significant attention, with the cryptocurrency community debating the potential long-term impact of XRP’s inclusion in the United States’ crypto strategic reserve. In addition, all eyes are on the upcoming White House Crypto Summit on March 7, 2025, as it could play a pivotal role in shaping market sentiment and influencing XRP’s price movements.

XRP’s Strong Network Engagement Boosts Price

XRP has seen a remarkable increase in active addresses, which have surged to an all-time high of 1.16 million over the last seven days. This significant rise in network activity indicates strong user engagement and a higher demand for the cryptocurrency. Just a week ago, the number of active addresses stood at only 236,000, highlighting a sharp uptick in user participation.

The increase in active addresses is important as it signals rising adoption and growing transaction activity. With higher engagement, XRP’s price could see continued upward pressure, supporting the recent rally. Although there are still debates about XRP’s inclusion in the U.S. crypto strategic reserve, this surge in network activity suggests that investors remain active and engaged, which could fuel further price growth.

XRP’s Golden Cross Could Signal More Gains

XRP’s technical chart shows the possibility of a “Golden Cross” forming soon. A Golden Cross occurs when the short-term moving average (50-day EMA) crosses above the long-term moving average (200-day EMA). This is often seen as a bullish signal, suggesting that upward momentum could be gaining strength. If the Golden Cross does indeed form, XRP could push through key resistance levels, potentially testing prices at $2.74, $2.99, and even reaching $3.15.

However, for this bullish trend to materialize, key market developments will need to align. XRP’s price could see further gains if the broader market remains positive and if the inclusion in the U.S. crypto strategic reserve moves forward as planned. Additionally, declarations at the White House Crypto Summit may influence sentiment and provide further clarity on the future of cryptocurrency regulation in the U.S., which could impact XRP’s trajectory.

XRP Faces Challenges as Bullish Momentum Weakens

Despite the positive signs, there are concerns regarding the strength of XRP’s current trend. The Directional Movement Index (DMI) shows a weakening bullish momentum. The ADX, which measures trend strength, has dropped significantly to 18.49 from 36.2 just four days ago. This suggests that the current trend lacks sufficient strength to sustain an uptrend.

The +DI (positive directional index) has fallen to 25.1, down from 50, while the -DI (negative directional index) has risen to 14.4, up from 9.3. This shift indicates that while buyers are still in control, selling pressure is beginning to mount. If the DMI continues to weaken, XRP may struggle to maintain its upward trajectory, and a reversal could be imminent.

Potential Price Levels to Watch

If XRP’s upward momentum falters, it may face resistance at $2.74, and a failure to break through this level could see the cryptocurrency test lower support levels at $2.50 and $2.33. A deeper correction could drive prices further down to $2.06, or potentially below $2, with $1.95 acting as the next key support level.

Despite these potential challenges, the overall outlook for XRP remains positive if the Golden Cross materializes and if network activity continues to grow. The next few days could be crucial in determining whether XRP can sustain its recent gains or whether the market will face more resistance.

Conclusion

XRP’s impressive 7% surge and the potential formation of a Golden Cross have fueled optimism among traders and investors. Strong network activity and the possibility of a breakout above key resistance levels suggest that XRP may continue its upward trend. However, the cryptocurrency faces challenges, particularly with weakening bullish momentum and rising selling pressure. The upcoming White House Crypto Summit and developments regarding the U.S. crypto strategic reserve will likely play a significant role in determining whether XRP can maintain its bullish trajectory or face a correction in the near future. Investors should monitor these factors closely to adjust their strategies accordingly.