XRP Price Prediction: Ripple Breakdown To $0.6 Imminent
- XRP price struggles with sustaining the uptrend above $0.7.
- A low network growth implies that XRP will take longer before gaining traction to $0.8 and later $1.
- An incoming golden cross pattern could mark the beginning of the uptrend.
Ripple has kept an intense fight above $0.7 but still struggles to keep up with other major altcoins such as Ethereum, Polkadot, and Uniswap. In July, the international money transfer token has recovered from lows around $0.52 to highs of $0.78. Nonetheless, bars still caught up to the bulls, making it difficult for gains to proceed to $0.1.
XRP Price Correction Under $0.7 Brewing
The seemingly week technical picture coupled with a dwindling on-chain front is a perfect recipe for another correction in the coming sessions. On-chain data by Santiment brings to light a bearish signal, likely to hinder recovery in the short term.
According to the behavioural analytics platform, network growth is an on-chain metric that tracks new or unique addresses created and involved in a transaction on the protocol for the first time. Typically the model highlights the project’s adoption over some time. Moreover, it points out whether the token is gaining or losing traction.
When an asset’s network growth is consistent, in other words, the number of newly created addresses is increasing; the price tends to rise loyally with it.
On the other hand, diminishing network growth is a bearish signal. For instance, the number of newly-created addresses on the XRP Ledger topped out at 3,041, tracked on the monthly trailing average. At the moment, only 2,400 addresses have joined the protocol, representing a 20% decline.
If the downtrend continues, we expect XRP to face a rising overhead pressure while bulls lack the willpower to proceed with the uptrend, in turn favoring a potential breakdown.
Ripple Network Growth Metric Bearish
The four-hour chart affirms the bears’ grip on the price, mainly when the Relative Strength Index (RSI) is analyzed. As the RSI tracks the trend of XRP, it calculates its strength. The drop from areas close to the overbought toward the midline implies that bears have the upper hand. Moreover, the RSI has a negative divergence, which comes to the picture when the indicator starts to break away from a generally up-trending market.
Similarly, bulls must hold firmly to support at $0.7; otherwise, massive sell orders will be triggered amid investors panicking. Already skepticism exists of whether XRP can resume the uptrend. Therefore, any signs of market instability could send Ripple toward $0.6.
XRP/USD 12-Hour Chart
Looking At The Other Side Of The Fence
The same four-hour chart shows a possible golden cross pattern that is likely to form in the coming sessions. As the 50 SMA crossed above the 100 SMA, the odds for an upswing toward $0.8 will shoot up. Therefore, support at $0.7 for XRP remains key for the resumption of the uptrend and the confirmation of the golden cross.