Crypto pundit CW has noted that transactions on the XRP Ledger (XRPL) are rising rapidly, which presents a bullish outlook for XRP. The analyst noted how this is a positive signal and could indicate that a bullish reversal may be on the horizon for the altcoin.
Transactions On The XRP Ledger Are On The Rise
In an X post, CW shared CryptoQuant data showing that transactions on the XRP Ledger are increasing. He noted that in a bear market, investors generally leave the market, and transactions decrease. Meanwhile, an increase in transactions is a pattern that occurs before a rally.
CW stated that the increase in transactions on the XRP Ledger is a positive signal, especially given that it has rebounded strongly from the lows recorded in December 2024. The increase in this metric comes amid a market downtrend, partly due to increasing tensions between the U.S. and Iran.
Oil prices have continued to rise amid the U.S.-Iran war, reaching as high as $115 today, its highest level since 2022, putting XRP and the broader crypto market at risk. On-chain analytics platform Glassnode recently revealed that 36.8 billion XRPs are currently in loss at current levels, which translates to an unrealized loss of $50.8 billion.
Crypto analyst ChartNerd stated that a big move is brewing for XRP based on this development. The analyst had alluded to the liquidity heatmap, noting that there was a liquidity stack to the downside between $1 and $1.20. He also revealed that there is a liquidity stack to the upside at $1.80. As such, XRP could drop to between $1.20 and $1 to grab the downside liquidity before it then rebounds to grab the liquidity at around $1.80.
Why XRP Could Still Drop To $0.7
In another X post, ChartNerd predicted that XRP could still drop to $0.7. He noted that this prediction is partly based on Bitcoin’s structure and the tendency to follow 4-year cyclical behavior, with prices topping out in the fourth quarter of last year. The analyst added that mid-term years, such as this year, are also historically bearish for crypto.
ChartNerd said that XRP could rebound sooner, alongside Bitcoin and the broader market. However, he noted that Bitcoin’s structure repeats like clockwork during typical bearish mid-term years and bear markets. As such, the analyst remarked that it is important for BTC to hold the support on its $60,000 low to invalidate a decline towards $50,000 to $40,000, which could open the door for XRP to drop towards $0.70.
At the time of writing, the XRP price is trading at around $1.35, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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