Lorenzo Stroe
Independent Analyst
- XRP price is holding above a crucial moving average support level on the 4-hour chart.
- Ripple faces weak resistance ahead and could quickly move up.
- On-chain metrics show that XRP price is overextended and poised for a correction.
XRP price has had an impressive 240% rally since April 3, hitting a three-year high of $1.96 and moving closer to ranking third again in terms of market capitalization, only $6 billion behind BNB at the moment.
XRP price must hold above crucial support level for a significant rebound
On the 4-hour chart, XRP has been trading above the 21 SMA since the beginning of April. This moving average has rejected any downward price action and led Ripple to significant rebounds.
Holding this crucial support level could drive XRP price toward the previous high at $1.96 as there is not a lot of resistance ahead.
XRP/USD 4-hour chart
However, the MVRV ratio (30d), which shows the average profit or loss of XRP tokens moved in the last 30 days, hit levels not seen since 2018. This indicates that XRP price is extremely overextended and due for a correction.
%20[14.37.43,%2015%20Apr,%202021].png)
XRP MVRV ratio (30d) chart
The inability of XRP bulls to hold the 21 SMA support level would be significant. A 4-hour candlestick close below this moving average could drive XRP price down to the 50 SMA located at $1.35.
In the worst-case scenario, if the 50 SMA fails to hold, Ripple could even drop as low as $1 at the 100 SMA level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.