Ripple Price Forecast: XRP deals with lockstep trading amid weakening on-chain metrics


  • 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 4-hour chart

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.

XRP/USD four-hour chart

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Largest DeFi exploit of 2022 wipes out $80 million from Qubit's Ethereum-BSC bridge

Ethereum-BSC bridge of Qubit Finance suffered a hack to the tune of $80 million in the largest DeFi exploit of 2022. Hackers exploited the "deposit" function to steal cryptocurrencies from Qubit Finance. 

More Ethereum News

Decentraland bulls go against the bearish trend, targeting $2.60

Decentraland (MANA) price has been on the front foot in a challenging market environment. MANA bulls look ready to eke out  28% of gains for this week after the price lifted from the 200-day Simple Moving Average (SMA) and is now set to pop and stay above the monthly S1 support level.

More Decentraland News

Charles Hoskinson awaits launch of Vaccuumlabs DEX on the Cardano network

Cardano network activity hit a peak with a spike in transactions on the network. Charles Hoskinson, the CEO of IOHK, is awaiting the launch of Vaccuumlab's DEX on the Cardano network. 

More Cardano News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

More Bitcoin News

Bitcoin: Federal Reserve cannot tame BTC’s uptrend

Bitcoin experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed’s decision was announced. As losses have extended and Bitcoin has entered into the $30,000 zone, concerns regarding BTC being in a bear market have increased.

Read full analysis

BTC

ETH

XRP