The XRP Ledger (XRPL) has recently captured significant attention due to a huge uptick in payment transactions. The State of XRP Ledger Q1 2024 report by Messari on May 28th reveals that XRPL experienced an astounding 350% increase in quarter-over-quarter (QoQ), averaging two million transactions daily.
This surge, primarily driven by inscriptions, started in late Q4 2023 and continued into Q1 2024 before tapering off towards the quarter’s end. The shift in transaction dynamics saw payments becoming the most common transaction type on XRPL, overtaking OfferCreates, which historically held this position.
According to the report, total transactions on the XRPL increased by an impressive 113% QoQ, averaging 2.8 million per day. This uptick in transactions was mirrored by a substantial increase in network activity, with active addresses and transactions rising by 37% and 113% QoQ, respectively.
Notably, the number of active addresses sending XRP saw a remarkable 92% QoQ increase, surpassing unique receivers for the first time since Q1 2022.
The surge in payment transactions and network activity on the XRPL has not gone unnoticed by market analysts. Some analysts predict a significant rally for XRP, targeting double-digit price levels in the coming months.
X user EGRAG CRYPTO shared a price chart showing XRP’s recent performance aligning with the Fib 0.702 – 0.786 levels. The analyst targets a price range of $1.20-$1.50, highlighting $0.70-$0.75 as a critical breakout point. EGRAG CRYPTO also noted XRP’s strength along the “Atlas line,” a trendline where prices have historically rebounded.
Analyst JAVON MARKS added that XRP has displayed a “hidden bull divergence” over recent months, potentially leading to a rapid “mass expansion.” MARKS predicted a bull run due to XRP nearing a “major converging point” and showing an RSI pattern indicating momentum.
Currently, XRP’s RSI stands at 44.6, down from last week’s. Levels above 70 suggest an overbought condition.
Factors Driving XRP Ledger’s Growth and Market Outlook
Several factors are driving the growth of XRPL and its potential for a significant rally. The approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC) is expected to have positive implications for ETH and other tokens like Solana. Classifying Ether as a commodity rather than a security settles a long-standing debate and sets a precedent for other coins.
Additionally, integrating new features and functionalities, such as the Automated Market Maker (AMM) and introducing a USD-pegged stablecoin, are expected to serve as liquidity catalysts for XRPL and drive further growth and adoption.
Market analysts are increasingly bullish on XRP’s price trajectory, with some predicting a substantial rally soon. Technical analysis suggests that XRP is currently holding strong support levels and is poised for a breakout towards higher price targets. At the time of writing, XRP was trading at $0.52, marking a 2.17% decline in the past 24 hours.
