Ripple Price Uptrend To $1 In Grave Danger As New Addresses Created On The XRP Ledger Nosedive
- Ripple price fights to hold higher support after suffering rejection at $0.7.
- XRP’s downtrend was reinforced by a sharp drop in the network growth on-chain metric.
Ripple price is doddering at $0.66 on Thursday during the European trading session. The international money transfer token upswing from the massive drop last week to $0.52 lost steam on touching $0.74. The resistance was emphasized by the 50 Simple Moving Average (SMA) on the 12-hour chart.
Toward mid-this week, XRP lost the position above $0.7, as bears explored lower levels. For now, Ripple price can barely hold above $0.65 as overhead pressure intensifies. The number of addresses joining the network may have destabilized the market, extending the leeway for the ongoing correction.
Ripple price on a support hunting mission
Following the rejection from $0.74, overhead pressure has continued to soar. Besides, higher support is yet to come by. Ripple price is trading at $0.66 as bulls hope to secure the downside at $0.65. Note that a 12-hour close under the immediate support may trigger losses toward $0.55 before buyers ultimately control the price for gains aiming for $0.88.
Meanwhile, the Relative Strength Index (RSI) appears to be reinforcing the bearish narrative. In the wave of the rejection at the midline, the trend strength indicator sustains a downward movement. If the RSI closes the gap to the oversold, it will imply that sellers are more aggressive and investors should anticipate more losses.
XRP/USD 12-hour chart
The downtrend has been validated by a massive drop in the number of addresses joining the Ripple network, according to on-chain data by Santiment. The network growth metric shows the number of newly-created addresses on the XRP Ledger each day, illustrating user adoption over time. This metric is used to identify whether the crypto project is gaining or losing traction.
Ripple network growth metric flips bearish
A declining network growth like the one XRP is experiencing is a bearish signal. The level of network activity is negatively impacted when adoption goes down. Hence speculation for XRP hitting higher price levels goes down. In other words, it becomes difficult to sustain the uptrend.
Looking at the other side of the picture
It is essential to consider a minor bullish signal from the Moving Average Convergence Divergence (MACD) indicator. Initially, a bullish signal flashed when the 12-day exponential moving average (EMA) crossed above the 26-day EMA. In addition to that, the MACD is almost brushing shoulders with the zero line. A break into the positive region will validate the uptrend’s resumption for gains above $0.7.