Crypto pundit CW noted that transactions in XRP Ledger (XRPL) they are growing rapidly, which shows the positive outlook of XRP. The analyst noted how this is a good signal and could indicate that a bullish reversal may be on the horizon for the altcoin.
XRP Ledger Transactions Are Growing
In an X postCW shared CryptoQuant data showing that transactions on the XRP Ledger are increasing. He noted that in a bear marketinvestors generally leave the market, and transactions decline. Meanwhile, the increase in transactions is a pattern that occurs before the meeting.
The CW revealed that increased transactions on the XRP Ledger is a positive signal, especially given that it has rebounded significantly from the lows recorded in December 2024. The increase in this metric comes amid a market downturn, partly due to increased tensions between in the US and Iran.
Oil prices continued to rise during the US-Iran war, reaching as high as $115 today, its highest level since 2022, which puts XRP and the range. crypto market in danger. Glassnode’s on-chain analytics platform recently it was revealed that 36.8 billion XRP is currently lost at current levels, which translates to an unrealized loss of $50.8 billion.
Crypto analyst ChartNerd said that a big move is made by XRP based on this development. The analyst talked about the liquidity heat map, noting that there is a liquidity stack going down between $1 and $1.20. He also pointed out that there is a liquidity stack that goes up to $1.80. Therefore, XRP may drop to between $1.20 and $1 to hold the lows before retrieving around $1.80.
Why XRP may still drop to $0.7
For another X postChartNerd predicted that XRP could still fall to $0.7. He mentioned that this prediction is partly based on it The structure of Bitcoin and the tendency to follow a cyclical behavior of 4 years, prices are higher in the fourth quarter of the previous year. The analyst added that mid-years, like this year, are also historically bearish for crypto.
ChartNerd said XRP could bounce back soon, alongside Bitcoin and the broader market. However, he noted that Bitcoin’s structure repeats itself like clockwork during typical bearish mid-term years and bear markets. Thus, the analyst noted that it is important BTC holding support from its $60,000 lows to make a move down to $50,000 to $40,000 unlikely, which would open the door for XRP to drop to $0.70.
At the time of writing, the price of XRP is trading around $1.35, the highest in the last 24 hours, according to the report. data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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