- Ripple steps above $1.5 as bulls gaze at $2.
- The profit or loss ratio rebounds from zero as buyers take up more positions.
- Declining network growth is a bearish signal likely to culminate in correction.
Ripple pushed higher after holding the crucial support at $1.3. A break above the 100 Simple Moving Average (SMA) bolstered the cross-border transfer token past $1.4 and $1.5, respectively. At the time of writing, XRP teeters at $1.55 after hitting a barrier at $1.6. Despite the stalling, Ripple has recently broken out of an ascending triangle, which could continue to push it to higher levels.
Ripple bulls unwavering push for $2
The four-hour chart highlights the formation of an ascending triangle. A breakout has occurred above the x-axis resistance, targeting a 45% upswing to $2.1. Ascending triangles are bullish continuation patterns that come into the picture in an uptrend.
Meanwhile, higher support, probably at $1.5, will ensure that the bullish impact does not fade. On the other hand, buyers must focus on stepping above $1.6. A move such as this could catapult Ripple significantly upward.
XRP/USD 4-hour chart
The Moving Average Convergence Divergence (MACD) validates the uptrend in the short-term. For instance, a bullish impulse emanates from the indicator's movement in the positive region (above the mean line at 0.00). Similarly, the MACD line (blue) divergence above the signal line affirms the narrative hence; hence is in the bulls' hands.
The market value realized value (MVRV) on-chain model by Santiment highlights the average profit or loss of the holders of XRP tokens which have been over the last 30 days and compared to the price when each of the tokens last moved.
An MVRV ratio zero or below is a bullish signal because investors at this point are mainly at a loss or are yet to break even. In other words, Ripple experiences low overhead pressure, which results in the price rallying. Recently, the MVRV hit lows under zero, calling more buyers into the market amid rising speculation.
Ripple MVRV model
Looking at the other side of the fence
Ripple's network growth has been declining over the last week. The downtrend in the number of new addresses joining the XRP Ledger topped out at nearly 12,400 on April 21 but currently average at roughly 5,400. This represents a 56.5% drop and is interpreted as a bearish signal.
Ripple network growth
A declining network growth insinuates that the project is losing traction regarding adoption. The inflow and outflow of tokens are also interrupted, which affects the token value. Therefore, a correction may continue if this metric does not recover soon.