Ripple Price Prediction: XRP Uptrend Collapses, Renewing Calls for $0.5
- Ripple price shatters the uptrend that had respected the confines of an ascending parallel channel.
- Massive sell signals appear, especially with the MACD and the RSI on the four-hour chart.
- XRP’s low network activity affects bullish speculation levels while losses gain traction.
Ripple price has been on a gradual upward trend over the last couple of weeks. The recovery continued to struggle, but bulls seemed up to the task while gazing at $0.8 and $1, respectively. However, barriers at $0.7 and $0.74 made sure to cool down the bullish steam while selling pressure intensified.
Ripple price could intensify declines to $0.5
Last week, many analysts called for XRP’s plunge to $0.5, but the token stayed afloat at $0.64. However, recovery became unsustainable toward $0.7, leaving investors in a mundane no-trade market.
As this week started, Ripple displayed signals of a potential upswing, but a bearish wave across the market invalidated the narrative. Ripple bowed to the selling pressure under the 50 Simple Moving Average (SMA), resulting in losses beneath the 100 SMA and the ascending parallel channel. Moreover, XRP is trading at $0.63 while risks for a potential drop to $0.5 mount.
XRP/USD four-hour chart
Simultaneously, the Moving Average Convergence Divergence (MACD) indicator has a vivid bearish outlook based on the four-hour timeframe. Following the rejection from $0.7, the MACD could not hold above the mean line (0.00) but affirmed the downtrend as it crossed into the negative region. In addition, the 12-day exponential moving average (EMA) flashed another sell signal as it crossed below the 26-day EMA.
At the same time, the Relative Strength Index (RSI) adds credence to the bearish outlook while emphasizing the intensifying bearish grip. More losses will come into play if the RSI closes the gap to the oversold region.
According to Santiment, Ripple is dealing with dwindling network activity. The active addresses metric tracks the number of addresses transacting on the network each day. Declining network activity is a bearish signal because it negatively affects the level of interaction. As speculation for recovery or uptrend to higher levels reduces, Ripple bows to overhead pressure, explaining the ongoing correction.
Ripple active addresses metric
Can Ripple renew the uptrend?
It is worth mentioning support at $0.62, which may allow bulls to regain balance. A daily close above the 100 SMA on the four-hour would help validate the recovery and perhaps shift the bulls’ attention from seeking support to gaining ground above $0.7.