XRP’s price remained steady above the $0.57 mark on Thursday, August 15, gaining 6.7% over the last four days. On-chain data reveals steady growth in user activity on the XRP Ledger (XRPL) network since the recent update in the Ripple vs. SEC case. With this catalyst in play, could XRP’s price push above the critical $0.60 level?
XRP Has Climbed 4% this Week
At the beginning of August, XRP had a difficult start as its price dropped to the lowest point in three months on August 5. However, the overall cryptocurrency market began to show signs of improvement during the second week of the month. This recovery was partly due to the less severe penalty imposed on Ripple by U.S. authorities. This decision was viewed positively by many investors, especially considering the prolonged legal dispute with the Securities and Exchange Commission (SEC).
During the recent market fluctuations, XRP has shown remarkable resilience when compared to other alternative cryptocurrencies. This resilience can be observed in the price action, as XRP experienced a notable 6.7% price increase, rising from $0.55 to $0.574 between August 11 and August 15. Meanwhile, the TOTAL3 chart indicates a 4.8% decline in the broader altcoin market, which lost over $28.4 billion in market capitalization. This contrast suggests that XRP has internal bullish catalysts, propelling its performance ahead of the market average.
Ripple Victory Has Sparked an Increase in Network Usage
The impact of the ruling appears to extend beyond mere FOMO buying. Underlying on-chain data shows a significant increase in user activity on the XRP Ledger blockchain since the ruling. Specifically, daily transactions on the XRP Ledger have surged, reflecting broader market confidence.
The chart highlights that daily transactions rose from 985,498 on August 6 to 1,587,800 by August 13. This represents a 61% increase in just a week. The surge correlates with the U.S. court’s decision to fine Ripple $125 million, marking a positive end to the prolonged SEC case.
Two factors contribute to this bullish signal: first, increased daily transactions often indicate heightened network activity, a precursor to price surges. Second, more transactions suggest growing adoption, which is typically positive for long-term price stability. If this trend continues and broader market sentiment improves, XRP could be on the verge of a major breakout.
XRP Price Forecast: $0.61 Sell-Wall Looming Large
The technical outlook for XRP is cautiously optimistic, with key resistance and support levels in focus. XRP has been trading within a narrow range between $0.55 and $0.57. The recent uptick to $0.574 brings XRP closer to a critical resistance level at $0.61.
The Keltner Channel (KC) indicator suggests that XRP’s price is nearing the upper boundary, a potential sign of overextension. However, the Parabolic SAR (Stop and Reverse) dots remain below the price, indicating a continuing uptrend.
The first major resistance at $0.61 is significant, as it marks the upper limit of the current trading range.
If XRP manages to break through this resistance, the next target would likely be around $0.65. However, failure to surpass $0.61 could lead to a retest of support at $0.55, with a potential further downside toward $0.50 if market sentiment deteriorates.
In summary, while XRP’s recent performance is promising, it faces a crucial test at the $0.61 level. A break above could signal further gains, but investors should be cautious of a possible pullback if this resistance holds firm.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
