- Ripple rebounds after support at $1.12, settling above $1.4.
- The influx of funds into XRP products soars, pushing AUM to $83 million.
- The MVRV on-chain metric ratio resets, showing that overhead pressure is soaring.
Ripple retreated amid the volatility in the cryptocurrency market over the weekend. Support at $1.12 came in handy, preventing declines from exploring levels under $1. An initial recovery stalled at $1.53 on Monday. Meanwhile, XRP trades at $1.41 at the time of writing amid a resumed uptrend.
Institutional Investors Turn to XRP Products
Altcoins in the market, including XRP, saw an uptick in institutional investor interest. The positive sentiment could have been accentuated by growth experienced in the altcoin market, and especially for XRP.
Data by CoinShares indicates that Ripple’s assets under management (AUM), otherwise referred to as XRP investment products, grew by $33 million to $83 million. Since the beginning of March, the upswing has been the most bullish regarding institutional crypto products.
Ripple Nurtures Uptrend Eyeing $2
A descending parallel channel on the four-hour chart has controlled price action since the rejection close to $2. However, support at $1.12 ensured that Ripple bulls focus on upswing back to $2.
Meanwhile, the short-term technical picture is bullish based on the Moving Average Convergence Divergence (MACD). As this indicator moves toward the mean line (0.00), the bullish grip strengthens. Besides, the MACD line (blue) has crossed above the signal line, adding weight to the narrative.
XRP/USD Four-Hour Chart
The Relative Strength Index (RSI) also shows that Ripple’s slightest resistance path is upward. The RSI measures the strength of a trend and identifies overbought and oversold conditions. XRP is currently yet to hit overbought levels, which means that the uptrend is still in the initial stages.
According to data by Santiment, Ripple’s network growth has started to improve. The hiccup that led to declines to $1.12 saw the number of new addresses joining the network daily fall from the 30-day high of 11,600 to 7,200. At the time of writing, the unique address average at 7,918 as investors pay more attention to the project. Improving network growth is a bullish signal, likey to see the recovery continue toward $2
Ripple Network Growth Model
Ripple Bearish Outlook
The market value realized value (MVRV) by Santiment confirms that the ratio is resetting. In other words, XRP holders are selling for profit. Note that this on-chain metric tracks “average profit or loss of those holding XRP tokens which moved in the last 30 days, based on the price when each token last moved.”
Ripple MVRV Model
A high ratio is a bearish signal because investors are likely to sell for profit. On the other hand, a low MVRV rate suggests that most investors are at a loss and prefer to hold longer.