- Ripple ripe for liftoff above $2 and begin the next chapter to $3.
- Retail speculation on the network places XRP around $3 in the short term.
- The cross-border cryptocurrency is overbought, hence a call for caution.
Ripple has hit a new milestone almost every day since last week. The international remittance token made a significant stride toward $2 on Tuesday. In the meantime, the price dodders at $1.93 amid the push for action beyond $2.
Ripple Eyes Massive Breakout Above $2
Ripple seems to be restoring its position and glory in the market after several gruesome months due to the United States Securities and Exchange Commission (SEC) lawsuit. Numerous exchanges delisted XRP following the allegations that Ripple Labs and its top executives sold unregistered tokens to investors and managed to stay away from regulation for nearly eight years.
Nonetheless, as the case proceedings unfold, the SEC proves that it has a weak case and Ripple Labs could emerge winners. For this reason, investors seem to be paying more attention to the token that had been sidelined for months.
At the time of writing, short-term technical levels clearly show that the slightest resistance path is north. For instance, the Moving Average Convergence Divergence (MACD) emphasizes the bullish narrative while moving higher in the positive region. Besides, the MACD line (blue) strike above the signal line points to the trend north.
It is possible that $2 is an inflection point and may trigger massive buy orders amid rising speculation and the fear of missing out (FOMO). The most awaited milestone is to overcome the hurdle at $3 and open the door for an uptick to new all-time highs.
XRP/USD Daily Chart
According to Santiment, the level of speculation within the XRP community has significantly gone up. This follows another upswing in the number of active addresses tracked on a 30-day moving average. The on-chain model shows that the addresses currently interacting on the protocol have soared to a 30-day high of nearly 46,000. The increase indicates that network activity has improved dramatically, which is a bullish signal.
Ripple 24-Hour Hour Active Addresses
Similarly, the high speculation is reflected by an increase in the number of addresses joining the network daily, as shown by Santiment. The network growth model brings to light the massive upswing in the newly-created addresses, clocking 6,505 from a 30-day low of 1,970. The price is bound to continue rallying as long as network growth continues to soar.
Ripple Network Growth
It is worth mentioning that Ripple is exceptionally overbought at the time of writing based on the Relative Strength Index (RSI) position. Overbought conditions mean that the token is trading above its market value and often leads to a correction. Therefore, it is essential to proceed with caution. On the downside, formidable support is anticipated at $1.5 and $1.2, respectively.