Ripple Price Prediction: XRP back into the limelight ahead 49% breakout

Last Updated July 23rd 2021
2 Min Read
  • Ripple affirms support at $1.4, followed by a liftoff to $1.6.
  • The ascending triangle pattern breakout could place XRP marginally above $2.5.
  • A declining network growth could hinder the expected upswing.
  • Ripple is trading in the green just like other cryptocurrencies in the market. The cross-border transfer token lifted off support at $1.4 during the weekend session, allowing bulls to focus on higher levels toward $1. At the time of writing, XRP has risen to exchange hands at $1.59 amid a bullish building momentum.

    Ripple draws closer to a possible ascending triangle breakout

    The weekend session embraced support at $1.4, provided by the 100 Simple Moving Average (SMA) and the 200 SMA on the four-hour chart. The ascending triangle’s hypotenuse reinforced this buyer congestion zone. This support allowed more buyers to enter the market at a lower price, as speculation for $2 gained momentum.

    An ascending triangle pattern is a bullish formation. It marks the continuation of the previous trend, which is usually bullish. As the uptrend becomes apparent, a breakout is expected to come into the picture.

    It is worth mentioning that the ascending triangle represents a period of consolidation characterized by low trading volume. Usually, the breakout occurs before the trend lines meet. A strike above the x-axis leads to a spike in speculation for an upswing to higher price levels. A colossal increase in trading volume accompanies it. For instance, Ripple may lift above $2 and extend the bullish leg to $2.58 based on the ascending triangle.

    XRP/USD four-hour chart

     Ripple XRP 4-Hour Chart

    Ripple’s market value realized value (MVRV) has finished resetting and is currently in recovery. According to Santiment, the metrics highlight the average profit or loss of the holders of XRP tokens which moved over the last 30 days compared to the price at which each of the tokens last moved.

    Ripple MVRV ratio

    Ripple XRP MVRV ratio

    At the time of writing, the MVRV ratio stands at 5% after rebounding from levels close to zero. A low or negative MVRV ratio is a bullish signal because investors are not profitable and prefer to hold until the price lifts.

    Looking at the other side of the fence

    According to the network growth model by Santiment, the number of new addresses joining the network has significantly gone down. Following a 30-day high of nearly 12,400 addresses per day, Ripple currently attracts an average of roughly 6,750 addresses.

    Ripple Network growth

     Ripple XRP Network Growth

    As the unique addresses drop, a bearish outlook emerges. If the situation remains unchanged, the expected uptrend may lose traction and give way to bearish advances. Besides, closing the day under $1.6 is a massive bearish signal.