XRP Price Prediction: Ripple Must Break Through $0.78 To Takeoff To $1
- XRP price lifts toward $0.75 after bulls refused to give in to overhead pressure at $0.7.
- A break above $0.78 is needed to validate and call more buyers into the market for gains toward $1.
- A declining number of new addresses joining the networks remains a key stumbling block to Ripple's uptrend.
Ripple closed the previous day (Wednesday) above $0.7 (a situation) that called for market stability. Investors' interest shot up as they increased their positions, in turn pulling XRP toward $0.75. The 50 Simple Moving Average (SMA) on the four-hour chart delayed the recovery, resulting in sluggish price action.
Meanwhile, Ripple is exchanging hands at $0.735 amid a renewed push by the bulls for gains toward $0.78. If the overall technical picture improves, the cross-border money transfer token could start to lift higher.
XRP Price Holds In The Bullish Hands
The short-term technical outlook is relatively bullish, especially after XRP gained ground from $0.7. The Relative Strength Index (RSI) affirms the bullish outlook as it recoils above the midline. With the gap toward the oversold narrowing, it shows that buyers have the upper hand and will likely prep Ripple for the ultimate liftoff beyond $0.78.
At the same time, the Moving Average Convergence Divergence (MACD) indicator currently helps drive the bullish point home. Although the trend-following tool had flipped bearish at the beginning of August, the downward pull on XRP appears to be fading. Another buy signal is likely to occur in the coming sessions as the 12-day EMA crosses above the 26-day EMA.
XRP/USD four-hour chart
It is worth mentioning that Ripple is trading above all the key moving averages in the four-hour timeframe, including the 50 SMA, the 100 SMA, and the 200 SMA. With the 50 SMA turning into short-term support, buyers will shift their focus on cracking the following barriers at $0.75 and $0.78. Note that a daily close above $0.78 could accentuate Ripple's bid for $1.
Looking At The Other Side Of The Fence
Santiment's new addresses on-chain model shows that the number of unique addresses created on the Ripple network topped out on July 30 at a high of 3,140 per day, calculated on a one-month trailing average. Since then, XRP's network growth has declined by new active addresses per day.
Ripple Network Growth Model
Only 2,040 new addresses were created based on this trailing average on August 5, which can be considered a significant bearish sign for Ripple. Hence, recovery to $0.78 would longer while thinning chances of gains toward $1.