Ripple Price Prediction: XRP Defies Bearish Calls Holding Above $0.8, Investor Gaze at $1
Daily Ripple XRP Technical Analysis
- Ripple embraces crucial support at $0.8, avoiding potential losses to $0.65.
- Short-term technical indicators align to support another liftoff toward $1.
- A declining network growth seems to be hampering recovery.
Ripple seems to be entering another period of consolidation following formidable support established at $0.8. Meanwhile, bulls bid for gains above $0.9, at least in the near term. At the time of writing, XRP trades at $0.87, following a 6.4% growth in 24 hours.
Ripple bulls aim for $1 after breaking the prevailing consolidation
Ripple has entered a consolidation period that has forced the Bollinger bands to squeeze on its four-hour chart. Squeezes are symbolic of low volatility periods and are usually followed by noteworthy price movements. The longer the contraction, the higher the probability of a robust breakout.
It is worth noting that this technical tool does not provide a clear path about the direction of Ripple’s trend. As a result, the area between the lower and upper band is reasonably a no-trade zone. Only a four-hour candlestick close above or beneath this area will define where the cross-border money transfer cryptocurrency will move to next.
The MACD is a momentum oscillator employed in trading trends but rarely used to identify overbought and oversold conditions. The indicator overlays the chart with a couple of trend lines oscillating with no defined boundaries. It is worth mentioning that the crossover of these two lines is a trading signal resembling that of the moving average system.
Crossing above the midline (zero line) is regarded as bullish, while crossing below the same line is bearish. Importantly, when the MACD line (blue) crosses above the signal line, a bullish signal flashes. Alternatively, the trend tends to flip bearish when the MACD line moves under the signal line.
As for Ripple, the MACD is getting closer to lifting above the zero line. Besides, the MACD line has a positive divergence above the signal line, thus paving the way for gains past $0.9 and toward $1.
Looking at the other side of the fence
The network growth model has a massive bearish signal. According to Santiment, this tool tracks the number of new addresses created on the network daily. As shown in the chart, a declining network growth implies that the project is losing traction regarding adoption and value growth.
Ripple network growth model
As the number of new addresses dwindles, the level of speculation goes down. It means that most investors withdraw from the market, which interferes with network activity. Therefore, recovery may fail to materialize and perhaps lead to a breakdown.