XRP Eyes Another Breakout as $1.40 Support Holds Amid Growing On-Chain Activity

Ripple's XRP token has continued its correction, testing the $1.40 support level after a recent rally from $1.00 to highs of $1.70. Despite falling for two consecutive days, the token maintains a bullish technical structure.

The crypto market sentiment remains elevated at 65 in the Greed territory, down from 74 the day before, as reflected in the Fear & Greed Index. This higher risk appetite aligns with steady inflows into spot Exchange-Traded Funds (ETFs), which rose to $24 million on Tuesday from $14 million the previous day.

The number of addresses actively interacting with the XRP Ledger (XRPL) by sending or receiving assets has risen to 297,000 as of Wednesday, from roughly 119,000 the day before. This growing on-chain activity suggests higher user engagement, which may positively affect the underlying asset, especially if the price is trending higher at the same time.

However, traders should temper expectations because profit-taking remains a significant risk. According to Santiment, the cohort of addresses with between 1 million and 10 million addresses has sold the token over the last few days and now holds 5.89% of the total circulating supply as of Wednesday, down from 5.96% last Sunday.