- Ripple seeks support above the 61.8% Fibonacci level on the four-hour chart, while bulls eye $0.6.
- Short-term analysis based on the MACD shows that consolidation could take precedence.
- Declining network growth, as highlighted by Santiment, is a bearish signal.
Ripple managed to hold onto support at $0.55 during the weekend session. However, the price action to $0.6 remained limited due to the seller congestion zone at the 78.6% Fibonacci level taken between the last high of $0.65 to a low around $0.36. If the immediate support remains intact, XRP bulls will concentrate on trading above $0.6.
Ripple stuck in consolidation
The four-hour Moving Average Convergence Divergence (MACD) indicator is holding within the positive region but remains horizontal. This implies that price action is sideways, and XRP remains relatively in a no-trade zone. If the MACD line (blue) crosses above the signal line, the cross-border token will gain traction for higher price levels.
XRP/USD four-hour chart
The 50 Simple Moving Average (SMA) on the four-hour chart and the 100 SMA are sloping upward, signaling a persistent uptrend. A significant upswing will come into the picture if a golden cross pattern forms with the 50 SMA crossing above the 100 SMA. Besides, action beyond the 61.8% Fibonacci level is likely to trigger more buy orders as investors speculate for gains beyond $0.65.
Looking at the other side of the fence
Santiment, a behavioral and on-chain analytics platform, shines a light on the declining network growth. The number of addresses joining the network topped out at 3,303 on March 21 and has slumped to 2,244 at the time of writing, representing a 32% drop. Note that a falling network is a bearish signal because it interferes with the inflow and outflow of tokens within the network.
%20[10.31.11,%2029%20Mar,%202021]-637526051526379313.png)
Ripple network growth
Similarly, failing to hold above the 61.8% Fibonacci resistance level will open Pandora’s Box as losses come into play. On the other hand, failing to break above $0.6 would lead to a more extended consolidation period, as shown by the MACD on the four-hour chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.