XRP Price Forecast: Ripple Bears Tear Into The Gains As On-chain Metrics Hit Reset Button
- Ripple price tumbles from a high of $0.78, leaving support at $0.7, extremely vulnerable to overhead pressure.
- Dwindling on-chain activity reinforces the sellers’ newly found dominance.
- A confirmed break under the 50 SMA on the four-hour could send Ripple diving toward $0.62.
Ripple is bleeding alongside other cryptocurrencies. The pulldown comes after a two-week winning streak that saw the international money transfer token trade close to $0.8. However, a barrier at $0.78 cut short the uptrend, dampening the bullish pressure.
The ongoing correction appears to be extensive, especially with the support at $0.72 already jeopardized. Currently, bulls depend on the immediate support provided by the 50 Simple Moving Average (SMA) on the four-hour chart.
Holding above this crucial level is particularly vital for the resumption of the uptrend. Otherwise, a retest of the following support at $0.7 may prove detrimental to the progress made in the last couple of weeks.
XRP Price Facing Acute Selling Pressure As On-chain Metrics Reverse
According to the four-hour chart, the Moving Average Convergence Divergence MACD) has a massive bearish signal. This trend-following tool also calculates the momentum of an asset heading in a specific direction.
The MACD combines readings from two moving averages to come up with a signal. As the 12-day EMA crossed below the 26-day EMA, a call to sell XRP appeared. Note that its movement to the mean line accentuated the bearish outlook, allowing sellers to take control.
XRP/USD four-hour chart
Since July 25, Ripple’s network growth shot up considerably and topped put at 3,041 new addresses per day on July 30, representing a 50% uptick from 1,675. The increase shows that XRP gained traction, becoming more attractive to investors.
However, a correction is underway, perhaps reflecting the fall from $0.75. At the moment, 2,742 addresses have been created on the XRP Ledger. If the downtrend proceeds, bulls will not have the gist to sustain the uptrend toward $0.8. Instead, a price drop beneath $0.7 will come into play, pushing Ripple back to $0.62.
Ripple Network Growth Metric Flips Bearish
The market value realized value (MVRV) by Santiment tracks the holders of XRP tokens moved in the last 30 days and analyzed against the price at which the tokens last moved. It is believed that a high MVRV ratio shows that most holders realize profits, therefore, are likely to sell.
Ripple MVRV Ratio Resets
Following the upswing from $0.62, the MVRV rallied from -17% to and topped out at 15%. However, it has dropped to 3.3% as of writing, hinting at increased overhead pressure as holders take profits. If the ratio falls toward zero and other levels, we expect Ripple’s downtrend to intensify.