- Ripple seeks support above the 61.8% Fibonacci level on the four-hour chart, while bulls eye $0.6.
- Short-term analysis based on the MACD shows that consolidation could take precedence.
- Declining network growth, as highlighted by Santiment, is a bearish signal.
Ripple managed to hold onto support at $0.55 during the weekend session. However, the price action to $0.6 remained limited due to the seller congestion zone at the 78.6% Fibonacci level taken between the last high of $0.65 to a low around $0.36. If the immediate support remains intact, XRP bulls will concentrate on trading above $0.6.
Ripple stuck in consolidation
The four-hour Moving Average Convergence Divergence (MACD) indicator is holding within the positive region but remains horizontal. This implies that price action is sideways, and XRP remains relatively in a no-trade zone. If the MACD line (blue) crosses above the signal line, the cross-border token will gain traction for higher price levels.
XRP/USD four-hour chart
The 50 Simple Moving Average (SMA) on the four-hour chart and the 100 SMA are sloping upward, signaling a persistent uptrend. A significant upswing will come into the picture if a golden cross pattern forms with the 50 SMA crossing above the 100 SMA. Besides, action beyond the 61.8% Fibonacci level is likely to trigger more buy orders as investors speculate for gains beyond $0.65.
Looking at the other side of the fence
Santiment, a behavioral and on-chain analytics platform, shines a light on the declining network growth. The number of addresses joining the network topped out at 3,303 on March 21 and has slumped to 2,244 at the time of writing, representing a 32% drop. Note that a falling network is a bearish signal because it interferes with the inflow and outflow of tokens within the network.
%20[10.31.11,%2029%20Mar,%202021]-637526051526379313.png)
Ripple network growth
Similarly, failing to hold above the 61.8% Fibonacci resistance level will open Pandora’s Box as losses come into play. On the other hand, failing to break above $0.6 would lead to a more extended consolidation period, as shown by the MACD on the four-hour chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera
Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds
Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?