Is Ripple (XRP) Price About to Explode: Three Important Things to Watch This Week
TL;DR
- XRP’s On-Chain Metrics Surge: XRP saw a record number of transactions as of late, with the average transactions per ledger also reaching new highs.
- Growth in XRP Wallets: The number of XRP wallets has significantly increased, indicating a larger user base and potentially boosting investor confidence.
- Stable XRP Prices Amidst Market Optimism: XRP’s price has been stable, hovering between $0.60 and $0.65. The overall bullish sentiment in the crypto market, especially with Bitcoin’s recent rise, might influence XRP’s future price movements.
The Signals for a Potential Price Breakout
Is Ripple’s native token – XRP – on the verge of a price rally? This question has sparked interest in many industry participants, considering the developments of its parent company last year, more specifically, its success in its lawsuit against the US SEC.
On-chain metrics are important to gauge XRP’s future price volatility. According to data from xrpscan, the number of executed XRP transactions exploded to an all-time high of almost 7 million on December 31 and 6.9 million the following day.
The average number of transactions per ledger has also peaked at unseen levels, staying above the 300 mark in the past three days.
An increase in transaction volume indicates higher network usage and interest in XRP, which might be perceived positively by investors, potentially triggering a price rally.
XRP Stands so Close to a Massive Milestone
Another factor is the rapid rise in the number of XRP wallets, which jumped to almost 5 million. In contrast, the figure stood at approximately 4 million at the start of last year.
The development generally signals a growing user base and increased adoption of XRP, which might infuse excitement and confidence among investors, positively affecting their sentiment.
The BTC ETF Expectations
XRP has not experienced any substantial price swings in the past several weeks, consolidating between $0.60 and $0.65. Cryptocurrencies are typically volatile, and prolonged consolidation is usually a precursor to a more significant move and an indicator of incoming price movements – in any direction.
However, considering the bullish sentiment of the cryptocurrency market, prompted by the possible approval of a spot Bitcoin ETF in the United States, odds might favor a price rally rather than a correction.
Recall that BTC surpassed the $45K level earlier today (January 2) for the first time since April 2022, while the global crypto market capitalization reached $1.85 trillion (per CoinGecko’s data).
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