XRP Price Prediction: Ripple Poised For A Catalyzed Launch Above $0.7

2 Min Read
Last Updated July 23rd 2021
  • XRP price prepares for a significant move according to the Bollinger bands squeeze.
    • The MACD will likely flash a buy signal in the coming sessions, bolstering Ripple above $0.7.

    Ripple price seems to be preparing for another liftoff above $0.7. A daily close above the short-term support at $0.61 ensured that losses toward $0.5 were avoided entirely. Meanwhile, the international money transfer token exchanges hands at $0.635 amid a renewed push for gains eyeing highs beyond $0.7.

    XRP price draws close to a Bollinger and breakout

    Bollinger bands usually show when the market is consolidating. Similarly, traders can study this tool to correctly time considerable movement in price. Ripple is relatively in a no-trade zone (between the upper and lower Bollinger bands boundaries).

    A Bollinger bands squeeze like the one on Ripple’s chart hints at a massive breakout. However, this indicator does not tell the breakout direction. It is essential to realize that a four-hour close above the upper curve will validate an upswing, pushing XRP past $0.7.

    XRP/USD four-hour chart

     XRP/USD 4-hour chart 071321

    The moving average convergence divergence (MACD) indicator adds credence to the bullish narrative, as seen on the chart. This technical indicator follows the path of a trend and calculates its momentum.

    At the moment, the MACD appears to be flipping bullish within the same time frame as a continuation of a buy signal flashed on July 9. As the 12-day exponential moving average crosses above the 26-day exponential moving average, the odds for a bullish impulse will increase significantly, thereby setting Ripple for a massive swing above $0.7.

    Ripple is still in the buy zone according to the market value realized value (MVRV) by Santiment. The on-chain model tracks the holders of XRP tokens moved in the last 30 days compared against the price at which each token last moved.

    An MVRV ratio around zero a d below shows that most holders at a loss. In other words, they are unlikely to sell but prefer to wait for an uptick in price. It also infers that overhead pressure will drop massively, allowing Ripple to rally.

    Ripple MVRV model

     XRP/USD santiment chart 071321

    Looking at Ripple Price Bearish Outlook

    Ripple price is battling the 50 Simple Moving Average (SMA) resistance on the four-hour chart. Breaking above this level will bring XRP close to $0.65 (the 100 SMA and the 200 SMA); otherwise, the headwind will surge, pulling the price back to $0.61. Note that the last line of defense is at $0.6, which, if shattered, we can expect XRP to drop to $0.5 before another recovery attempt.

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