XRP price remains under pressure this week as the crypto fear and greed index moved to the fear zone ahead of the Federal Reserve interest rate decision. Ripple dropped to $2.23 on Wednesday, down 35% from its highest level in 2025. This article explores whether the XRP coin will drop to $1 or jump to $5 this year as the number of addresses jumps.
XRP Addresses Are Surging
Third-party data shows that the number of active addresses on the XRP network continued rising this week and is hovering near its all-time high.
According to Santiment, the number of active addresses in the last 7 days jumped to 1.19 million, a big increase from the year-to-date low of below 250k.
Similarly, the number of active addresses in the last 90 days surged to over 2.19 million, a sign that the network is growing.
One reason for this growth is that the XRP Ledger is doing well. Over the past three days, the recently launched Ripple USD (RLUSD) stablecoin has attained a market cap of over $130 million, meaning it is gaining user traction. Unlike many other stablecoins, the daily volume of the RLUSD has jumped in the past few weeks.
Other top players in the XRP Ledger ecosystem include Sologenic, Crypto Trading Fund, Coreum, and XRP Army. This ecosystem will continue growing, especially when the SEC decides to end the lawsuit against Ripple Labs.
The other crucial catalyst for the XRP is the potential XRP ETF approval, which may lead to more inflows from institutions and other investors. The challenge, however, is that XRP ETFs will be highly competitive, as are currently 18 applications pending. This includes companies like Invesco, Fidelity, Franklin Templeton, and WisdomTree.
READ MORE: XRP Price Prediction as Colombo Expects Ripple to Crash
XRP price prediction: will Ripple hit $5 or $1 first?
Looking at the daily chart can help us predict whether the XRP price will drop to $1 or surge to $5 first.
This chart shows that the odds are that the coin may drop to $1 first because it has formed a Head and Shoulders pattern. The head part is $3.4, the right and left shoulders are $3, and the neckline is $2.
A drop below the neckline means that the Ripple price will enter the markdown phase of the Wyckoff Theory, leading to panic selling among investors. The next key support level to watch will be $1.
A move to $5 is more challenging since the XRP price needs to be first moved above $3, and the right head and shoulders pattern must be invalidated. It then needs to flip the year-to-date high of $3.4 into a support level, which would attract FOMO, leading to a surge to $5.
READ MORE: Crypto Crash: Why Are Pepe, ADA, XLM, Solana Going Down?
