Ripple Price Forecast: XRP Battles Immense Overhead Pressure, Breakout Imminent
- Ripple price golden cross pattern on the four-hour chart is a solid bearish signal.
- An improving network growth shines a light on XRP’s robust on-chain front.
Ripple price holds within an ascending parallel channel at the time of writing. The lower edge of the channel has been instrumental in ensuring that losses are mitigated. In addition to that, the 100 Simple Moving Average (SMA) in the four-hour timeframe adds credibility to the support.
In the meantime, Ripple trades at $0.66, but its upside has been capped from touching $0.7 for over a week now. The Moving Average Convergence Divergence (MACD) indicator does not have a defined signal based on the four-hour chart. As this technical tool follows the trend of an asset and measures its momentum levels at the mean line, a sideways trading price action tends to take precedence.
Ripple Price Bullish Outlook
A golden cross pattern came into the picture when a 50-day moving average crossed above the longer-term 100 SMA. Usually, in a downward market, overlays the chart below the 100 SMA. Nevertheless, as the downward pressure fades, the short-term moving average strikes the area above the longer-term moving average, identifying the impending flip from bearish to bullish.
While the golden cross does not signify entry positions or targets, it compels the trader to be on the lookout for entry points. Therefore, it is likely that the uptrend will continue in the near term. Meanwhile, bulls must be aware that a break above $0.7 will trigger massive buy orders for gains aiming at $0.8 and $0.7.
XRP/USD four-hour chart
The uptick can reinforce the same bullish narrative in the number of addresses created on the XRP Ledger daily. Network growth is an on-chain metric created by Santiment. The model is used to track new or unique addresses created and involved in transactions on the protocol for the first time.
Naturally, the chart highlights the project’s adoption over some time while pointing out whether the token is gaining or losing traction. If Ripple’s network growth remains consistent, in other words, the number of newly created addresses continues to grow; the price will also follow suit.
However, we must be aware that diminishing network growth is a bearish signal. It shows that the digital asset does not have the willpower to proceed with the uptrend and hints at a potential breakdown.
Ripple network growth on-chain model
What could invalidate Ripple price potential upswing?
The 50 SMA on the four-hour chart must transform into support to ensure that buyers shift attention from securing support to lifting above $0.7. Moreover, the uptrend sustains in the ascending trend line to ensure that losses are kept at bay.