- Ripple breaks out in double-digits leading the weekend's session's gains.
- An ascending triangle paved the way for the rally heading to $0.75.
- A 74% decline in network growth is a bearish signal likely to interfere with the upswing.
Ripple finally broke the resistance at $0.6 and significantly increased the bullish action. A key triangle breakout validated the rally, allowing bulls to focus on gains toward $0.75.
Ripple Battles Short-Term Resistance at $0.7
At the time of writing, the cross-border cryptocurrency is dancing at $0.68. The seller concentration at $0.6 has capped the immediate upside. Meanwhile, XRP holds onto the previous breakout from the ascending triangle, discussed severally last week.
The four-hour Moving Average Convergence Divergence (MACD) vividly shows that the prevailing trend is in the bulls' hands. The MACD line (blue) has significantly expanded the gap above the signal line. If the technical picture remains the same, Ripple is likely to hit levels beyond $0.7 and extend the price ratio to $0.75.
XRP/USD Four-Hour Chart
The market value realized value (MVRV) by Santiment confirms the bullish outlook after resetting below the zero line. This metric highlights the profit or loss incurred by XRP holders over some time. A low MVRV ratio shows that investors are at a loss or are yet to break out, thus unlikely to sell and this is a bullish signal.
On the other hand, a higher MVRV ratio implies that holders are in profit and consider selling, which is a bearish signal. At the time of writing, the MVRV ratio moves upwards from zero, insinuating that buying pressure is rising.
Ripple MVRV Ratio
Looking at the Other Side of the Picture
Ripple's network growth on-chain metric by Santiment lags behind the ongoing price action. Network growth tracks the number of new addresses joining the network daily. The model shows that the unique addresses topped out at 12,556 on February 1 have declined to 3,228, pulling back by a whopping 74%.
Ripple Network Growth
A low or reducing network growth is a bearish signal and implies that the protocol is losing traction in terms of adoption. At the same time, losses are likely to come into the picture because the regular inflow and outflow of tokens are affected.