XRP Network Activity Spikes 67% While Price Forms Bullish Reversal Pattern

• XRP has delivered a staggering 984% gain since 2020, vastly outperforming gold and USD.
• The XRP Network activity has surged 67.5%, with a sharp rise in active addresses recently.
• A bullish inverse head and shoulders pattern suggests a potential breakout to $2.70.

Looking beyond daily charts, XRP has stood out as a quiet yet powerful long-term performer since 2020. Data shows XRP surging 984% over that period, dramatically outpacing traditional safe havens like gold (which gained 78%) and underscoring the devaluation of the US dollar, which lost 25% of its purchasing power in the same timeframe. 

Simply put, $100,000 in 2020 buys only $75,000 worth of goods today, while that same amount invested in XRP would have grown nearly tenfold.

Related: What’s Next for XRP Price April 23? Analysis Eyes Key Support Test

This context matters as XRP’s network shows fresh life. Analyst Ali Martinez highlighted a sharp 67.5% spike in daily active XRP addresses (27k to 40k). This rise in user engagement often hints at future price action.

XRP Price Tests Key $2.09 Level

As of April 22 , XRP trades at $2.10, down 1.2% over the past 24 hours. Price action shows XRP testing the 20-day Exponential Moving Average (EMA) at $2.09, attempting to flip this level into support. 

However, with only a 4% rise in volume, the breakout lacks decisive bullish confirmation. To solidify momentum, bulls must drive volume significantly higher.

Related: Spotlight on XRP, Solana as 72 Crypto ETFs Seek SEC Approval This Year

Despite this short-term hesitation, a bullish inverse head and shoulders pattern is forming, according to Martinez . If confirmed, this classic reversal setup could push XRP to a target of $2.70 marking a nearly 29% rally from current levels.

Chart Analysis: Indicators Suggest Volatility Ahead

As per the daily chart below, the MACD (Moving Average Convergence Divergence) indicator recently saw the MACD line (blue) making a bullish crossover above the signal line, indicating potential upward momentum. 

However, the histogram remains relatively flat, hinting that the bullish momentum is still in its early phase and could reverse without volume confirmation.

At the same time, Bollinger Bands are narrowing ($1.87-$2.23). This tightening often happens right before a spike in price volatility, meaning a bigger move could come soon. 

A daily close above the upper Bollinger Band at $2.23 would confirm bullish momentum and likely accelerate a move toward $2.70, aligning with Martinez’s projection.

On the other hand, a rejection at this range could drag XRP back to the middle Bollinger Band around $2.05 or lower, toward the support zone near $1.87, marking a 10% downside risk if buyers lose grip.