- XRP price rebounds from crucial support at $0.51, with bulls putting up a fierce fight at $0.55.
- An uptick in on-chain metrics hints at the ongoing recovery gaining traction to $0.6 and $0.7, respectively.
Ripple seems to have found backing after nosediving to levels around $0.51 earlier in the week. Bulls across the market are flexing their muscle as crypto assets record significant gains. XRP is up 2.6% as it commences the recovery journey to $0.6. A break above $0.5 would trigger more buy orders as investors await an ultimate swing to $0.7.
XRP Price Nurtures The Uptrend As Recovery Takes Root
The international money transfer token is teetering at $0.5 while bulls battle the resistance at $0.55. Its recoil from $0.51 was quick, but bulls seem to be taking time to make way to $0.6 due to the apparent overhead pressure that must not be ignored.
However, trend indicators such as the Relative Strength Index (RSI) show that bulls are mainly in control. Note that this tool tracks Ripple’s trend and determines the strength. As illustrated on the chart, a sharp move emphasizes the uptrend gaining traction and XRP in the bulls’ hands.
Trading above $0.5 will affirm the uptrend while allowing buyers to nurture gains in the trajectory to $0.6. Nonetheless, a supply barrier at $0.58 and highlighted by the 50 Simple Moving Average (SMA) may hinder the breakout or perhaps slow it down.
XRP/USD four-hour chart
Ripple’s On-chain Activity Spikes
According to on-chain data by Santiment, Ripple’s immediate recovery is a collective effort. The network growth model, which tracks the number of newly-created addresses on the XRP Ledger, reveals a significant uptick from 1,770 to 2,823, representing a 30% rise.
The on-chain analytics platform says that spikes in the number of addresses joining the network give an insight into how Ripple is gaining tracking, especially in mainstream adoption. As the network growth soars, the price tends to rally. Thus XRP’s recovery could be sustainable in the near term.
Ripple Network Growth On-chain Model
Subsequently, network activity seems to have soared amid the initial recovery phase, as illustrated by the “Active Addresses 24-hour” model. This metric dives into the number of addresses interacting on the XRP Ledger daily.
Ripple Active Addresses Metric
Spikes in this metric suggest an increase in the speculation level. In other words, more investors are joining the market, thereby speculating the price gaining traction to higher levels. Hence, an uptick such as the one seen with XRP bolters the token value upward.