XRP Price Analysis: Ripple Rally Wanes At $1.35 Amid Mixed On-Chain Signals
- XRP price begins correction toward $1.2 after rising to test $1.35.
- An uptick in network growth suggests that bulls can sustain the uptrend toward $2.
- A slump in the network activity, especially the 24-hour active addresses, adds weight to the pessimistic outlook.
The international money transfer token Ripple remained steady with the quest to recover the ground lost in the May selloff. Last week’s move above $1 triggered increased investor interest as speculation surged. Bulls later stretched the up leg to $1.35, ending the weekend session in the green.
Meanwhile, a correction is underway, perhaps due to overbought conditions. Live price data by CoinGecko indicates that Ripple is trading 2.4% lower in the last 24 hours. The $59 billion cryptocurrency has amassed a trading volume of $8.5, tracked across all know exchanges. Ripple is among a few tokens that are in the green while the market is mainly painted green.
XRP Price Holds At At Crossroads
Ripple has retreated from the nearly three-month high to trade at $1.26. According to the Relative Strength Index (RSI) on the daily chart, the correction is gaining momentum. As the RSI tracks the trend of an asset, it measures the strength of the bulls and the bears. Hence, in the liftoff from $0.5 (July lows), bulls were the strongest.
However, an RSI level above 70 suggests overbought conditions. It is not often possible to sustain the asset in this region for long as the RSI tends to retreat, giving bears a chance to get into action.
The bullish outlook will remain unchanged if Ripple resumes the uptrend and settles above $1.35. Besides, the Moving Average Convergence Divergence (MACD) indicator still has a bullish impulse, implying that buyers still have the mojo.
XRP/USD Daily Chart
Santiment’s network growth model shows that the number of newly-created addresses on the XRP blockchain has been rising sharply since the beginning of August. Spikes in this metric suggests that the project is gaining traction in mainstream adoption. Moreover, as the uptick of the token increase among investors, bulls gain the momentum to sustain the uptrend.
Ripple Network Growth On-Chain Model
Exploring Ripple’s Bearish Outlook
According to the active addresses, an on-chain metric by Santiment, a platform known for behavioural analytics, Ripple’s uptrend may not be easy to sustain in the near term. This follows comes a slump in the number of addresses interacting on the XRP Ledger.
Ripple Active Addresses
The model shows that the addresses transacting on the network topped out at 22,940 on August 15 but have declined to 17,800 on a 30-day trailing average. As network activity fades, recovery becomes difficult to sustain; hence this is a bearish signal.
Support is expected at $1.2, which may bolster XRP upward. However, if push comes to shove, Ripple may as well revisit $1.