Ripple Price Analysis: XRP Price Recoils From $0.8 as Technical Levels Align for Gains Eyeing $1.7
- Ripples’ flash drop tested $0.8 support, poking holes in the uptrend eyeing $2.
- XRP is back in the buy zone, allowing investors to reenter the market at a lower price.
- Declining network growth is a bearish signal likely to hinder the uptrend from continuing.
Ripple fell victim to the losses that transversed the cryptocurrency market this week. The selloff on Wednesday affected XRP the most as the market value faded under $1 and tested support at $0.8. Following the support, buyers have taken control and are pushing for gains toward $1.7.
Ripple bulls fight against weak technical levels
Ripple trades at $1.16 at the time of writing amid a gradual recovery from the dip to $0.8. A Confirmed break above $1.2 has allowed more buyers to enter the market. Meanwhile, gains above $1.3 may trigger more buy orders as speculation intensifies for an upswing past $1.4 and toward $1.7.
The Relative Strength Index (RSI) has a bullish outlook at the moment. This follows an upswing from lows around 30. Investors are looking forward to the trend strength indicator lifting to the midline and affirm the nascent uptrend.
XRP/USD four-hour chart
The market value realized value (MVRV) by Santiment, a behavioural analytics platform, shows that Ripple is back in the buy zone. Note that this metric measures the average profit or loss of the holders of XRP tokens moved in the last 30 days, compared to the price at which each of the tokens last moved.
Ripple MVRV model
An MVRV ratio of zero or below suggests that investors are at a loss or yet to break even. Therefore, it is improbable that they will sell because preference is put on holding until the price recovers. At the moment, the model has a -21.1% ratio, confirming the narrative that Ripple will start to rally due to reduced overhead pressure. Besides, more investors will enter the market at the prevailing price, adding force to the tailwind.
Looking at the other side of the fence
The network growth model is on a spiral, a situation that has not changed since the 30-day high of 12,400 addresses, created on April 20. At the time of writing, the metric shows the number of addresses joining the network average at 6,217. The big slump is a bearish signal for both the token value and the project’s adoption.
Ripple network growth model
A declining or low network growth pattern interferes with the regulator inflow and outflow of tokens on the protocol. It also shows that speculation for an uptick to higher levels is reducing. Therefore, recovery may be delayed or sabotaged.