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XRP Price Prediction: Ripple In Stasis But Bullish Case To $1.5 Has Weight

Last Updated October 14th 2021
2 Min Read
  • Ripple upside potential losses momentum toward $1.2, allowing consolidation to prevail.
  • XRP’s on-chain fundamentals support a bullish outlook which could eventually boost the price to $1.5.

Ripple is seen trading at $1.12 on Thursday during the European session. The international money transfer token had lifted to $1.2 earlier in the week. However, a bearish wave engulfed the market midweek, culminating in losses to $1.05.

XRP Price Deals With The Darkest Hours Before Dawn

The 50-day Simple Moving Average (SMA) provided XRP with the needed support to stop losses toward $1. A minor bullish wave boosted the price above $1.1, but it is becoming a challenge to sustain the uptrend.

According to the daily chart, the least resistance path is upward. However, Ripple lacks a catalyst to keep the uptrend intact despite the Moving Average Convergence Divergence (MACD) spotting a buy signal.

This technical indicator, which follows the path of a trend and calculates its momentum, turned bullish within the same timeframe for the first time since late July. As the 12-day exponential moving average crossed above the 26-day exponential moving average, the odds for a bullish impulse increased significantly.

XRP/USD Daily Chart

 XRP/USD Daily Chart 101421

Santiment’s network model shows that the number of new addresses created on the Ripple network bottomed out on July 25 at a high of 1,675 addresses per day, calculated on a 3-month trailing average. Since then, XRPs network growth has grown by new active addresses per day.

Roughly 6,222 new addresses were created at writing based on this trailing average, which can be considered a major bullish sign for Ripple in the near term.

Ripple Network Growth

 Ripple Network Growth 101421

At the same time, the Market Value Realize Value (MVRV), which measures the profit ratio of the holders of XRP, appears to be consistently rising. In September, the profit margin had dropped to -23.5, insinuating that most holders were dealing with losses.

Ripple MVRV Ratio

 Ripple MVRV Ratio101421

Currently, the MVRV holds at 10% amid a positive reset for profit. The last time this metric crossed the zero line, the profit ratio rose to 61.5%. Hence, there is still room for growth, and people are unlikely to sell at this time. Ripple will be better positioned to rally to $1.5 and other higher levels with reduced selling pressure.

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