- Ripple bounces off short-term support at $0.52, paving the way for gains toward $0.75.
- Improving network growth and an uptick in the active addresses reinforces XRP’s uptrend.
- A correction will come into the picture if Ripple fails to close the day above $0.6.
Ripple is among cryptocurrencies posting modest gains on Thursday. The cross-border token embraced $0.52 following a brief bearish wave during the European session on Wednesday. A rebound emanated from the support, leading to gains eyeing $0.6 and other higher levels.
Ripple Renews Uptrend Ahead of Major Liftoff
The international remittance token exchanges hands at $0.57 while buyers prepare to face the resistance at $0.6. XRP’s short-term analysis based on the four-hour chart shows that the trend has flipped bullish.
For instance, the Moving Average Convergence Divergence (MACD) indicator has settled within the positive region. Additionally, the MACD line (blue) has crossed above the signal line, thus validating the uptrend.
The MACD follows the trend of an asset and measures its momentum. This technical indicator helps traders identify positions to buy the dip and sell the top if used properly. Meanwhile, the current trend implies that XRP is in the bulls’ hands.
XRP/USD Four-Hour Chart
It is worth mentioning that bulls must purposely close the day above $0.6 to ensure market stability. Trading beyond this zone would also confirm the uptrend to $0.65 and $0.75, respectively, as investor speculation mounts.
Ripple’s network growth is on an upward roll, according to on-chain data by Santiment. The number of newly-created addresses had dropped to 1,971 on March 29 from a 30-day top of 3,303, recorded on March 22. However, the network growth on-chain metric reveals an upswing in the unique addresses from the monthly bottom to $2,245, representing a 16% increase.
The network growth metric measures the number of new addresses joining the XRP Ledger daily. Increasing network growth is a bullish signal, while a low or decreasing growth is a bearish signal. If the trend remains upward, we can expect XRP to extend the bullish leg further up.
Ripple Network Growth Chart: Santiment
The same uptick can also be witnessed in the number of active addresses on the XRP Ledger. Santiment’s tool tracks the level of interaction on the network on a 24-hour basis. Recovery is underway at the time of writing after the addresses dipped to nearly 10,400 on March 29 from a monthly top of approximately 18,500. The rise in the active addresses shows that speculation is rising among the holders of XRP and is a massive bullish indicator.
Ripple 24-hour Active Addresses: Santiment
Looking at the Other Side of the Fence
Ripple must close the day above $0.6 to validate the uptrend. If the resistance at this zone stays intact, overhead pressure will rise, forcing XRP to seek lower support. The 50 Simple Moving Average (SMA) on the four-hour chart is a tentative anchor zone that must be defended to avoid extended losses to $0.5. If push comes to shove, XRP may drop to the primary support between $0.4 and $0.35.