Why Did XRP Ledger Activity Spike?
XRP Ledger recorded one of its strongest network growth moves of 2026 after 4,300 new wallets were created within 24 hours, according to Santiment data cited in the source material.
The increase marked the fourth-largest growth spike on the network this year. Newly created XRP wallets rose to 4,300 on May 20 from about 2,500 on May 19, while daily active addresses increased to 43,520 from 32,000 over the same period.
The rise points to renewed network participation at a time when XRP remains under pressure below key resistance levels. Santiment said network growth is one of the leading signals used to identify potential reversals, while market analysts noted that wallet creation can show early demand returning to a blockchain network.
For XRP, the address growth comes as the market watches whether stronger on-chain activity can translate into price momentum. The token remains far below its July 2025 multi-year high of $3.66, and its latest recovery attempt has been capped by a dense resistance area between $1.40 and $1.55.
How Are ETF Flows Supporting the Bull Case?
The address growth also coincides with continued inflows into US-based spot XRP exchange-traded funds. Spot XRP ETFs held about 1.34% of XRP’s total supply after this month’s inflows, with about $107.3 million entering XRP ETFs so far in May.
Net inflows of $8.8 million on Thursday marked the 12th straight day of positive flows. The streak lifted cumulative inflows to nearly $1.4 billion, while assets under management reached $1.15 billion.
That flow data gives bulls a stronger fundamental argument than address growth alone. ETF demand can tighten available supply, improve institutional access, and give the market a clearer gauge of regulated demand for XRP exposure. Combined with wallet creation, it suggests XRP is drawing attention from both network users and investment vehicles.
Still, the price response has been limited. XRP was down 1.5% over the last 24 hours in the source material, showing that stronger participation has not yet been enough to overcome overhead supply.
Investor Takeaway
XRP’s latest setup is a test of whether network growth and ETF inflows can overcome a crowded resistance zone. The address spike is constructive, but price confirmation still depends on a sustained move above $1.40-$1.55.
Why Is $1.40 the Key Level for XRP?
XRP’s latest 21% rally from its April 5 local low at $1.27 stalled at $1.55, near the upper end of a range that has capped price action since early February. The $1.40-$1.55 zone has become the main barrier bulls need to break before a stronger recovery can develop.
That area is reinforced by several technical indicators, including the 50-day simple moving average, the 100-day simple moving average, and the 100-day exponential moving average. When moving averages cluster around the same price band, they can create a heavier resistance zone because traders often use them as entry, exit, and risk-management levels.
Cost-basis data adds another layer of resistance. Investors hold about 3.75 billion XRP at an average cost of $1.37-$1.45. This means many holders may look to sell near break-even if the price returns to that range, limiting upward momentum.
A second supply congestion zone sits higher at $1.68-$1.70, where investors bought about 3.8 billion XRP. That level also aligns with the upper boundary of a falling wedge pattern being watched by technical analysts.
What Would Confirm an XRP Breakout?
For now, XRP remains in a consolidation phase rather than a confirmed recovery trend. Buyers need to push the token above the multi-month trend line near $1.40 to show early strength, while a close above $1.61 would give a stronger sign that the trend is changing.
A weekly close above the upper trend line of the falling wedge could open the path toward a measured target near $3.52, according to the technical setup cited in the source material. That target would represent a major recovery from current levels, but it depends on XRP clearing resistance zones that have already slowed the latest rally.
The market structure is therefore split. On-chain activity and ETF inflows are improving, but price action remains constrained by holders who may sell into rebounds. This makes the next move above $1.40 important for traders watching whether XRP’s network growth is a true reversal signal or another failed recovery attempt inside a broader range.
