- XRP price is pivotal at $0.58 as recovery above $0.6 becomes a daunting task.
- Declining network growth is a massive bearish signal that continues to hinder Ripple price growth.
XRP price action has been drab all weekend long, with the upside capped at $0.6 while support established at $0.57. The cross-border money transfer token is generally in a downtrend within a descending parallel channel, as shown on the four-hour chart.
Meanwhile, Ripple must break above $0.6 to break the dilemma in favour of an uptrend toward $0.7. On the other hand, bears will emerge winners if XRP closes the day below the short-term support at $0.57, by extension, the channel’s middle boundary.
Ripple On-chain Activity Dwindles Curtailing The Uptrend
The network growth on-chain model by Santiment shows a persistent decrease in the number of new addresses joining the Ripple network each day. This metric shows the level of user adoption over time, giving insight into whether the project is gaining or losing traction.
A decrease in the number of addresses joining the network is usually a bearish signal. Therefore, as the downtrend is this metric progresses, XRP price recovery will be a challenging task.
Ripple Network Growth On-chain Metric
The number of active addresses interacting on the XRP Ledger has also been gradually going down, according to Santiment’s on-chain data. The Active Addresses metric tracks all the addresses involved in transactions on the network each day.
A dip in the number of new addresses suggests that the speculation level among investors is also down. In other words, XRP will lack the momentum to sustain an uptrend amid the withdrawing bulls. Hence, the path with the slightest resistance will remain south as long as on-chain activity fails to recover.
Ripple Active Addresses Metric
From a technical perspective, Ripple is neither in the hands of bears or the bulls. However, the descending parallel channel shows an overall downtrend price action.
On the other hand, the Moving Average Convergence Divergence (MACD) indicator shows that a sideways trading period will take precedence. Perhaps a buy or sell signal in the coming session will determine the direction Ripple will take.
XRP/USD four-hour chart
Note that a buy signal will come into play if the 12-day EMA crosses above the 26-day EMA and sustains that position. Moreover, a MACD cross past the mean line will validate the upswing above $0.6 and open the way for closing the gap to $0.7.
On the other hand, a sell signal will appear if the 12-day EMA crosses under the 26-day EMA. Besides, if the MACD explores lower levels under the mean line, the bearish grip will become stronger, thus allowing losses toward $0.5.