XRP Price Prediction: Ripple Confirms Breakout To $0.7 As Bitcoin Brushes Shoulders With $40,000
- XRP price makes a four-hour close above the 50 SMA as the uptrend sustains above $0.65.
- A break above the 100 SMA on the four-hour chart could trigger more buy orders to bolster Ripple above $0.7.
Ripple price rallied in tandem with other cryptocurrencies in the early hours of July 26. The Asian session exploded in fireworks amid a massive bullish comeback. According to CoinGecko, the international money transfer token has gained over 9.6% on the day while ushering in the European session.
It is essential to know that Bitcoin became the biggest gainer among the top 30, rallying by more than 15%. The bellwether cryptocurrency stopped just shy of $40,000 is currently exchanging hands around $38,400.
On the other hand, Ethereum close in on $2,400 but seemed to lag behind BTC. Perhaps the upcoming London Hard Fork will catapult the gigantic smart contract token higher.
Why Must XRP Close The Day Above the 100 SMA?
Ripple closed last week, trading above $0.6 following a colossal dip to $0.52. Before this support, some analysts had called for an extended drop to $0.45. However, investors took advantage of the low prices to increase their entries, creating momentum for gains above $0.6.
Meanwhile, the generally up-trending crypto market on Monday saw bulls edge above the bears. XRP closed the gap to $0.65, piercing the 50 Simple Moving Average (SMA). Ripple teeters at $0.66 at the moment, while bulls look forward to a break past the 100 SMA. Realize that a four-hour close above the immediate hurdle (100 SMA) will most likely boost XRP to $0.7.
XRP/USD four-hour chart
The Moving Average Convergence Divergence (MACD) indicator has a vivid bullish signal for the first time since the beginning of July. The call to buy Ripple occurred late last week after the 12-day exponential moving average (EMA) crossed above the 26-day.
Ripple’s uptrend is bound to continue as the MACD crossed above the mean line (0.00) into the positive region. The growing divergence between the above-mentioned moving averages also reinforced the bullish narrative.
What May Invalidate Ripple Price Breakout?
Intriguingly, on-chain fundamentals appeared to have lagged behind the ongoing price action. Hence, there is a possibility of the uptrend failing to sustain. For instance, Santiment’s network growth model shows a massive slump in the number of new addresses created on the XRP Ledger each day.
Ripple Network Growth Model
Declines in this metric show that the token is losing tracking in terms of adoption. With little uptake of the token, uptrends become challenging to sustain. Therefore, XRP may have difficulty closing the gap of $0.7 and continuing with the ultimate journey above $1.