- Ripple rejected from $1.9, giving leeway to the bears.
- The profit ratio starts to reset, implying that Ripple may correct further.
- Daily active addresses shoot to the moon as speculation for XRP rally intensifies.
Ripple rallied extensively from last week to trade another multi-year high of $1.9. Investors expected the cross-border cryptocurrency to hit highs above $2, but a correction has come into the picture. If the downward momentum deepens, losses are likely to stretch toward $1.
Ripple Winning Streak Broken
A persistent upswing from lower price levels of around $0.5 has dominated for two weeks. The cross-border token market capitalization significantly recovered, bolstering Ripple to the fourth position, trailing behind Binance Coin (BNB).
Seller congestion at $1.9 has limited movement, as bears rush for revenge after a continuous winning streak. A rise in overhead pressure under $1.9 has pushed XRP to trade at $1.73 while bulls fight to secure higher support.
Ripple’s uptrend also formed in an ascending parallel channel, whose middle-level support has been broken. Closing the day under this level may trigger massive losses. Moreover, price action under the lower edge would be highly detrimental to the progress made.
XRP/USD Four-Hour Chart
The downtrend has been reinforced by the Moving Average Convergence Divergence (MACD). This indicator is flipping bearish after a period of exclusive bullish activity. If the MACD line (blue) stays under the signal line, we can foresee losses extending.
According to Santiment, extreme profit levels have been witnessed by XRP holders. The market value realized value (MVRV) ratio stands at 100.5% at the time of writing. In other words, Ripple has yielded massively, sustaining almost all holders into profit.
However, the high MVRV is not a bullish signal because a high ratio means investors tend to cash out for profit. As the ratio resets, overhead pressure increases, leading to a significant correction. For now, XRP’s slightest resistance path is south.
Ripple MVRV On-Chain Model
Looking at the Other Side of the Fence
The “Active Addresses” model by Santiment is an on-chain metric highlighting the number of unique addresses in daily transactions on the network. This metric is used to measure community interaction on the protocol. In other words, it tracks investor speculation and suggests if the token is gaining or losing traction.
Ripple Active Addresses Chart
According to the model, Ripple’s active addresses recently hit a 30-day high of 54,260 compared to a low of roughly 10,400. The uptick in this metric coincided with the price upswing to $1.9. if the interaction remains high, we can anticipate XRP to resume the uptrend, pushing for gains above $2.