Ripple (XRP) Price Forecast: XRP Network Demand Surges 110% as Bulls Target $0.60 Breakout

Analysis: 

XRP price moved towards the $0.53 resistance in the early hours of Oct 29, reflecting 7.4% gains in 4 consecutive days of upside.

After lagging behind the market average for weeks, on-chain data trends shows increased network usage and increased volume of leverage applied on XRP LONG bets could potential drive prices further upwards, ahead of the US elections.

Here are 3 crucial indicators that could potentially impact XRP prices in the weeks ahead.

XRP Daily Network Usage Has Surged 110% Since RLUSD Stablecoin Launch

On Oct 29, XRP price reached a new weekly timeframe peak of $0.53, having gained 7.4% in dramatic 4-day winning run.

Before the ongoing recovery phase, XRP price had dropped to a multi-month low of $0.49 on Friday, sparking fears of massive long liquidations.

While this sharp rebound phase has coincided with major crypto-assets like Bitcoin (BTC) and Ethereum (ETH), on-chain data shows addition internal bullish catalyst driving the Ripple-backed coin this week.

CryptoQuant’s daily active addresses chart below monitors the number of unique user wallets that interact on a blockchain, helping to identify real-time swings in demand for financial services built on the network.

XRP Ledger Network recorded 17,079 active addresses on Oct 28, after reaching a monthly peak of 20,048 addresses 24-hours earlier.

On October 13, XRP’s daily active address fell as low as 9,570 addresses, reflecting that XRPL network demand has increased by more than 110% over the last two weeks.

Zooming out, the chart shows that the network demand has been on a steady rise since Ripple launched its native RLUSD in mid-October.

Ripple had announced the launch of its USD-denominated stablecoin around Oct 16, RLUSD. Since then, the growing adoption has triggered a significant uptick in on-chain demand for XRP.

 “Customers and partners have been asking for high-quality stablecoins like RLUSD to use across various financial use cases, such as payments, tokenisation of real-world assets, and decentralised finance.”

Brad Garlinghouse, Ripple CEO, explains the motivation behind the launch, Oct 16 2024.

Notably, based on the initial roll-out plans, RLUSD is still only available on a select few exchanges including, Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish.

With larger exchanges like Binance and Coinbase yet to be activated, there’s a potential for a further surge in XRPL network demand in the coming weeks.

XRP Funding Rate Hits 2024 Peaks as Bulls Gain Control

With this ecosystem expansion prospects from the RLUSD launch now firmly on investors radar, it is unsurprising that XRP futures markets has begun to attract increased flow of bullish bets.

Coinglass’ funding rate chart below measures the flow of fees paid between long and short traders holding futures contracts positions on a cryptocurrency.

As seen above, XRP Funding rate is trend at 0.14% at the time of publication on Oct 29. This represents a 100% increase in leverage from bull traders within the last 48-hours, pushing funding rates to its highest since June 2023.

Increase in funding rate when it coincides with a major uptick in network demand, it often signals, that traders are betting on positive impact of a well-received product launch.

XRP Price Forecast: $0.55 Resistance at Risk

This week, it appears the spike in network usage triggered by the RLUSD stablecoin launch, with future expansion prospects prompting traders to place more bullish bets on, as observed this week.

If these positive shifts in network usage, and LONG leverage persists, 7.44% price recovery observed on Oct 29, could advance into double digits in the coming days, as XRP price makes way toward the $0.57 area.

Technical indicators on the XRP/USD daily price chart shows the Bollinger Bands suggest a tightening trading range, with XRP currently testing the middle band at $0.5323.

This $0.53 resistance level aligns with the 20-day moving average. If breached, this could set the stage for a major breakout to the next psychological level of $0.57. Additionally, the RSI stands at 44.45, slightly below the neutral 50 level, indicating room for further buying momentum.

If XRP breaks above the 20-day MA at $0.53, and RSI heads towards the 50 mark, a sustained push to $0.57 could materialize. However, failure to break above $0.5323 could see prices retest support near $0.4976 before another attempt at higher levels.