- Ripple bounces off the support at $1.3 amid revamped bullish action in the market.
- The main goal in the bullish camp is to break out of the consolidating market.
- Decreased network growth and daily activity addresses could hamper the uplift.
Ripple battled for recovery last week but failed to overcome the hurdle at $1.6. As overhead pressure soared, Bitcoin slumped under $50,000 and tested a three-month low near $42,000. The bearish wave also impacted other cryptocurrencies like Ethereum, which lost the growth, almost hitting $3,000.
Following the support at $1.3, Ripple bulls concentrated on taking back control. At the time of writing, the international money remittance token has not only reclaimed the position above $1.4 but closed the gap toward $1.5.
Ripple's immediate upside is capped under $1.5, but according to the prevailing short-term technical picture, the least resistance path is north. For example, the Moving Average Convergence Divergence (MACD) has returned into the positive region.
In addition to that, the MACD line crossing above the signal line validated the uptrend. Therefore, a daily close above $1.5 will add weight to the growing bullish impulse.
XRP/USD four-hour chart
The same four-hour chart brings to light an elongated consolidation period, primarily between the stubborn hurdle at $1.6 and the crucial support at $1.2. The Bollinger Bands emphasize this consolidation.
It is essential to realize that the price has settled above the BB's middle boundary, adding credibility to the uptrend. A confirmed break above $1.6 could see XRP breaking the sideways trend and opening the road to $2.
Ripple's on-chain metrics remain bearish
The 24-hour active addresses metric by Santiment shows that network activity has significantly gone down from the 30-day high of roughly 37,000. Currently, an average of 23,200 addresses interact on the network daily. This means the level of speculation has gone down, or investors have retreated to the sidelines until Ripple confirms recovery.
Ripple daily active addresses
Falling network growth has emphasized Ripple's bearish picture. This model tracks the number of new addresses joining the network each day. As the addresses joining the XRP Ledger decrease, speculation also goes down. Therefore, bulls are likely to lack the power to sustain the uptrend, leading to a correction.
Ripple network growth
It is worth mentioning closing the day under $1.6 will continue validating the general consolidation. On the downside, support the BB middle boundary is key to securing the uptrend. If lost, the bearish leg will pressure the major support at $1.2 and $1, respectively.