Forecast: XRP Price to Hit $0.80 after Setting this New Bullish Record? 

Key Insights:

• Ripple (XRP) price rallied 5% on Christmas day, bouncing from an opening price of $0.61 to hit a peak of $0.65 
• Behind the scenes, the XRP Ledger network registered 12,819 new users on Tuesday alone, the highest daily traction recorded since Dec 24, 2021.
• The last time the Network Growth figures crossed 10,000, the XRP price soared more than 20% within the subsequent 72 hours. 

Ripple (XRP) price recorded a 5% rally on Dec 25 bouncing from an opening price of $0.61 to hit a peak of $0.65. On-chain analysis examines the key drivers behind the Christmas day rally and how XRP price could move in the days ahead. 

Was the rally just a flash in the pan or is XRP price revving up for a $0.80 retest?

XRP Network Growth Hit a 2-Year Peak on Christmas Day

Ripple (XRP) price soared to a 30-day peak of $.65 on Monday Dec 25, triggering millions of dollars of short liquidations within 24 hours. While it since experienced a pullback to $0.62 by lunchtime on Tuesday, on-chain data trend has revealed a key metric that could have driven the rally. 

Santiment’s Network Growth chart below provides daily update on the number of new wallets created on a blockchain network daily. According to latest reading, XRP ledger network recorded an unusually high number of new user wallets on Monday.

As depicted below, 12,819 new wallet were created on the XRP ledger network on Dec 25. Notably, the last time XRP network growth crossed the 11,000 mark was way back in Dec 2021. 

For better context, the previous peak Network Growth recorded for 2023 was 5,948, which occurred on July 13, as users trooped in XRP markets following the famous victory over the SEC. 

As highlighted above Network Growth, is a proxy for measuring the number of new users that blockchain ecosystem has acquired within a given period. Intuitively, and as observed by the historical trends above, a spike in network growth often impact the native token price positively. 

The spike recorded on Dec 25 suggests that a large number of new users have joined the XRP ecosystem. As these new users begin to carry out economic transaction, it could boost the XRP market demand in the coming days. 

In further confirmation of this bullish thesis, the last time XRP network growth crossed the 11,000 mark around Dec 22, 2021, the price skyrocketed by 18% within the next 72 hours. 

Based on this historical precedence, XRP could be in prime position for an audacious leg-up toward the $0.80 area in the days ahead. 

XRP Price Forecast: Can it Reach $0.80?

XRP’s prospect of reclaiming $0.80 rests heavily on the sentiment among current holders. However, if the recent spike in new users could translate into capital inflows as observed back in 2021, XRP price has real chance of making a significant upswing.

In the daily timeframe, Bollinger Band and Relative Strength Index (RSI) technical indicators also confirms this positive stance. As depicted below, with XRP price current trading at $0.63, if the bulls can regroup to defend the initial support around the middle-band at $0.62, it could open the door to a major upswing. 

Furthermore, the current RSI of 50.04, means that XRP is far from overbought territory. Hence, strategic investors could consider it a good entry point more major growth prospects. 

In effect, for the momentum to flip bullish, the XRP bulls will have to reclaim $0.67. However, failure to trigger a rebound from the $0.62 support level could trigger further XRP price downswing toward the 0.59 area.