XRP Price Forecast: XRP Upside Looks Heavy As Price Slides Into The Buy Zone

Last Updated September 15th 2021
2 Min Read
  • Ripple upside momentum depletes before reaching $1.2, hinting at a possible correction ahead of another rally to $1.4.
  • The short-term technical outlook is highly bearish, but the MVRV ratio places XRP in the buy zone.

Ripple bulls appear to be working tooth and nail to keep the price above $1. Upward price action to $1.2 has slowed down amid an increasingly challenging overhead pressure. Recently, the cross-border money transfer token has been rejected from $1.4, resulting in a massive drop to $0.92.

The daily chart's 50 Simple Moving Average (SMA) is in place to provide XRP with the necessary support. Another daily close above 41.1 may validate the upswing to $1.2 as bulls make headway toward $1.4.

XRP Price Prepares For Another Dip Ahead Another Rally

Ripple will likely explore the areas at $1 or below before resuming the uptrend. As it stands, bulls mojo seems to have run out, and pushing for gains would be an exercise in futility.

Realize that the Moving Average Convergence Divergence (MACD) has a vivid bearish signal. The call to sell XRP was first sent on August 24, but XRP tested support at $1.05 before stretching the bearish leg to $1.4. However, the widespread declines last week saw another sell signal released on September 6 that is still in play to a large extent.

If the MACD slides into the negative region, losses will be accentuated, and Ripple will be on gains-trimming exercise back to $1 and the areas heading to $0.92. A daily close under the 50-day SMA will add weight to the overhead pressure. It is worth mentioning that the 200-day SMA, holding at $0.928, would come in handy to halt the losses.

Similarly, the SuperTrend indicator in the exact time frame favors the bears. The technical index follows XRP's trend like a moving average. In addition, it incorporates the average true range (ATR) into its calculations to gauge volatility. A sell signal flashes when the SuperTrend closed the day above the price. With the technical outlook remaining unchanged, Ripple is bound to dip some more in the coming sessions.

XRP/USD Daily Chart

 XRP/USD Daily Chart 091521

According to Santiment, a leading behavioral and on-chain analytics platform, Ripple is back in the buy zone. The market value realized value (MVRV) tracks the holders of XRP tokens moved in the last 30 days compared to the price at which of these tokens previously moved.

Ripple MVRV Metric Below Zero

 Ripple MVRV Metric Below Zero 091521

A high MVRV figure shows that investors are in profit, which means they are likely to sell. On the other hand, a figure around zero and below suggests that most holders are experiencing a loss on their holdings are would prefer to hold. It is often advisable to buy when the MVRV ratio is highly negative, for instance, Ripple's -7.2%. Therefore, it is imperative to say that XRP is back in the buy zone.

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