Ripple Price Prediction: XRP on-chain metrics scream buy as upswing to $1 looms


  • Ripple bounces off in preparation for massive recovery above the ascending channel middle boundary.
  • The MVRV on-chain metric model shows that XRP is back in the buy zone.
  • A correction will come into the picture if Ripple fails to close the day above the 4-hour 200 SMA.

Ripple is nurturing an uptrend, following the recent breakdown to $0.35. The losses XRP suffered spread across the board in the market. Several tentative support levels did little to stop the sharp drop, including $0.55 and $0.4. Meanwhile, the cross-border token bulls have regained control, ready for another upswing to $1.

Ripple fights for another breakout

The drop to $0.35 appears to have been a blessing in disguise, allowing more investors to join the market at a lower price. XRP has recovered from the dip and now exchanging hands at $0.48. On the upside, bulls are battling the hurdle at the 50 Simple Moving Average (SMA) on the 4-hour chart.

Trading above this critical level is likely to pave the way for gains above the ascending parallel channel middle boundary. Another break above $0.55 will trigger massive buy orders in anticipation of gains eyeing $1. For now, the least resistance path is upwards, especially with the Relative Strength Index (RSI) on the 4-hour chart, bouncing off the oversold region and heading toward the midline.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

Santiment’s MVRV on-chain model reveals that Ripple is back in the buy zone. This metric measures the average profit or loss of the cross-border tokens that moved over the last 30 days compared to the price when each of the XRP tokens last moved.

A low MVRV ratio shows that most investors are at a loss or have barely broken even on their investment, hence the unlikelihood of selling. On the other hand, when the MVRV is high most traders are usually in profit and are most likely to sell.

Ripple MVRV chart

Ripple MVRV chart

Consequently, improving network growth is another bullish signal. The chart below shows the recent consistent increase in the number of new addresses joining the network. Such an increase indicates that user adoption is growing and is a bullish signal for the token. Therefore, XRP is likely to continue with the uptrend in tandem with improving network growth.

Ripple network growth

Ripple network growth

Looking at the other side of the fence

It is worth noting that Ripple’s upswing may fail to materialize if the immediate resistance at the 50 SMA on the 4-hour chart remains unshaken. Besides, the channel’s middle boundary is in line to hinder growth, adding to the selling pressure. On the downside, support at the 200 SMA must be guarded at costs to avert losses back to $0.35.


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


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

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.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

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.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP