XRP Price Analysis: Ripple Bulls Firmly Grip $1 While Tug Of War Intensifies
- XRP price lifts above $1 after retesting support at $0.92 last week.
- The MACD has a vivid bearish outlook that could keep the downtrend intact below $1.
- According to sentiment, increasing the number of active addresses is a bullish signal that XRP’s recovery will carry on.
Ripple had made great strides with its recovery from the beginning of September to the extent of briefly jumping above $1.4. However, a widespread bearish wave swept across the market last week, leaving most cryptocurrencies wallowing deep red waters. Ripple was not spared the ax, with losses stretching under $1. A monthly low traded at $0.92 market the most crucial support.
XRP has already regained part of the lost ground, but not much progress can be observed above $1. The seller congestion at $1.2 seems apparent, with overhead pressure continuing to hover.
Ripple Bulls Still On The Drawing Board
The daily chart highlights the 50-day Simple Moving Average (SMA), providing Ripple with immediate support. As long as this anchor zone stays intact, buyers will have the time to plan the next recovery attack mission.
It is worth mentioning the expected resistance at $1.2 and $1.4. Besides, the Relative Strength Index (RSI) shows that the general price action has the potential to remain sideways in the coming sessions.
At the same time, losses may come into play based on the Moving Average Convergence Divergence (MACD) indicator. Following the rejection from levels marginally above $1.4, a sell signal was triggered. The MACD reinforced the flash drop to $1.92 as it dropped toward the midline. If this technical tool slips into the negative region, losses will likely occur, leaving Ripple vulnerable to losses below $1.
Santiment’s “Daily Active Addresses” model shows that the number of new addresses created on the XRP Ledger network topped out on September 5 at a high of 5,091 addresses per day, calculated on a monthly trailing average. Since then, Ripple’s network growth has declined by new active addresses per day.
At the moment, only 2,891 new addresses were created based on this trailing average, which can be considered a significantly bearish signal for XRP.
Ripple Network Growth Falling
As long as Ripple stays above $1, the odds for a rebound past $1.2 and later $1.4 will gradually increase. Realize that the number of active addresses has been rising in the last couple of days after dropping to roughly 19,000, according to Santiment. At the time of writing, the addresses interacting on the protocol stand at 24,550, representing a 22.6% growth.
Ripple Active Addresses On An Upward Roll
A spike in the active addresses shows that speculation is on the rise. Hence, it is probable to expect Ripple to increase in price in the short term. Therefore, the recovery to $1.2 and $1.4 cannot be ruled out of the picture with this metric sending positive sentiments.