Ripple’s $125M fine Sparked 61% Increase in XRP Network Demand

XRP Price Analysis

XRP price held firm above the $0.57 level, marking a 6.7% increase over the past four days. On-chain data indicates steady growth in user activity on the XRP Ledger (XRPL) blockchain network, since last week’s positive ruling in the Ripple vs. SEC case.

XRP Maintains Upward Trajectory Amid Market Volatility 

August began on shaky ground for XRP, with the price plunging to a three-month low on August 5. However, the cryptocurrency market saw a recovery in the second week of August, largely linked to the lenient fine imposed on Ripple by U.S. authorities. Investors perceived the ruling as a positive outcome in the long-standing case against the SEC.

Since the ruling, XRP has demonstrated stronger resilience compared to the rest of the altcoin market.

Referencing the chart above, XRP has risen by 6.7% from $0.55 to $0.574 between August 11 and August 15. In contrast, the TOTAL3 chart shows a 4.8% decline, with the market losing over $28.4 billion. This discrepancy highlights that XRP has internal bullish catalysts driving its performance ahead of the broader market.

Ripple’s Victory Spurs 61% Increase Network Activity

The impact of the US court ruling extends beyond mere speculative buying. Underlying on-chain data reveals a significant uptick in user activity on the XRP Ledger since the ruling.

Following the ruling, which saw Ripple fined $125 million, XRP’s daily transactions skyrocketed from 985,498 on August 6 to 1,587,800 on August 13—a 61.1% surge in just a week.

This spike in daily transactions is a strong bullish signal for two main reasons. First, it points to increasing network utility, as more transactions generally imply more use cases and applications running on the network. Second, the increase in transaction volume suggests heightened user engagement, which is often a precursor to price appreciation.

Historically, such a significant rise in transaction volume correlates with positive price action. For instance, the increase in network activity last week coincided with a 15.3% rise in saw Ripple, from $0.59 on August 6 to $0.68 on August 13. This correlation suggests that as the network sees more use, investor confidence grows, driving the price upward.

If this trend of rising transaction volume continues, and if broader market sentiment turns favorable, XRP could be on the cusp of a major breakout.

XRP Price Forecast: $0.61 Resistance in Focus

Technically, XRP price faces a critical resistance level at $0.61. Based on the attached chart, two key indicators—MA Cross and Accumulation/Distribution Line (ADL)—are in play.

The MA Cross (9, 21) suggests that the short-term trend is neutral, with the 9-day moving average crossing above the 21-day moving average. This could indicate a potential uptrend, but the price action around the $0.57 level is crucial for confirmation.

Meanwhile, the ADL shows a gradual increase, indicating that buyers are accumulating XRP, although at a slower pace. If XRP can break through the $0.61 resistance level, it could signal a renewed bullish trend. On the downside, support is firmly established around $0.55, with further support at $0.52.

In conclusion, XRP price action is showing promise, but the next few days will be critical in determining whether it can sustain its upward momentum or face a correction. Keep an eye on the $0.61 resistance level as a key indicator of the next move.