Ripple Price Stuck Between A Rock And Hard Place, Here’s Why Bulls Could Win The Battle To $1
- Ripple price failed to surmount resistance at $0.78, allowing for a correction to $0.7.
- The 50-day SMA provides the much-needed support while the 200-day SMA limits the upside.
- A sustained bullish outlook by the MACD hints at bulls emerging winners of the tug of war, bolstering Ripple to $1.
Ripple price has cooled down following a week of persistent upward price action. In July, the international money remittance token saw its value slashed by a large margin to $0.52. The downswing seems to have allowed more investors to come in at lower prices, restarting the uptrend.
The news of a new remittance corridor tapping in the nearly $2 billion international money transfer market between Japan and the Philippines boosted XRP above $0.75. Ripple later touched $0.78 but could not continue the uptrend toward $0.8.
Ripple Price Action In Limbo
A rejection from $0.78 seems to have secured support at $0.7, while XRP trades at $0.71 at writing. The prevailing slugging price action has been restricted between two crucial levels; the 50-day Simple Moving Average (SMA) support and the 200-day SMA resistance. If XRP remains pivotal between these critical levels, we expect a consolidation period before the next move.
XRP/USD Daily Chart
The Moving Average Convergence Divergence (MACD) indicator could reinforce potential sideways price action as it levels at the mean line. The gradual recoil from July’s lowest level of -0.112 implies that bulls are relatively in control. However, traders should watch closely for the emergence of a buy or sell signal following the sideways action.
Note that a buy signal will confirm as the 12-day exponential moving average (SMA) widens the gap above the 26-day EMA. Moreover, Ripple’s uptrend will be accentuated by the MACD moving higher within the positive territory.
On the other hand, XRP will continue with the correction if the 12-day EMA crosses below the 26-day EMA. In addition, the MACD exploring the area below the mean line will trigger more losses and aggravate the downtrend toward $0.6.
Ripple Price Recovery Could Find Backing From The On-chain Front
According to on-chain data by Santiment, a behavioural analytics platform, Ripple has been enjoying a consistent uptick in the number of new addresses joining the network. The network growth metric shows that 2,960 addresses have been created on the XRP Ledger, up from a 30-day low of 1,675.
Ripple Network Growth Steadies
The 43.4% increase in this on-chain metric suggests that Ripple is gaining traction in mainstream adoption. Note that the price tends to lift in tandem with this uptick. Therefore, it is an important metric for investors to watch amid the sideways trading action to confirm either a bullish or bearish breakout.