Ripple Sees Massive Milestone: What Does it Mean for XRP Prices?
2025-01-05
Category: None

TL:DR;

The end of the year and the beginning of the new one are typically sluggish days for the cryptocurrency markets as traders tend to stay away and spend their time with other activities. This was evident during the past few weeks as well, as the trading volumes for almost all digital assetsslumped,including XRP’s, on December 31.
However, the landscape changed in a different direction on the next day. Ali Martinez outlined a massive milestone for XRP, showing that the transaction volume skyrocketed to over $7 billion on January 1. This was the highest level in at least a month, as the days prior and after that date saw a lot less activity.
$XRP recently experienced a spike in transaction volume, surpassing $7 billion! pic.twitter.com/Mm82HzpctC
— Ali (@ali_charts) January 4, 2025
In terms of XRP price movements, such a development could be considered bullish if it persists. A single spike and a subsequent decline could result in immediate but brief price increases, which is actually what transpired at the start of the new year. The asset went from around $2 to $2.5 within the first few days but is down on a daily scale to $2.4.
ChatGPT asserted that XRP could indeed benefit from such prolonged increases in transaction volumes but under certain conditions. These include rising demand and utility for the underlying token, the overall market sentiment, and XRP’s correlation with the broader market trends.
However, the AI chatbot warned that such high transaction volumes “might temporarily inflate the price, but if driven by speculation alone, the price might correct sharply” in what is known as ‘pump-and-dump’ risks.