Lorenzo Stroe
Independent Analyst
- The Ripple price had a colossal 100% rally in the past three days, hitting $1.19.
- The digital asset encountered intense selling pressure as holders took profits.
- One key on-chain indicator shows that XRP is poised for a more substantial correction.
The Ripple price had one of the craziest rallies in the past three days, jumping by 100% to a three-year high of $1.19. Despite the ongoing SEC lawsuit against Ripple, XRP holders have grown confident in the digital asset and managed to push it above several important resistance levels.
Ripple price poised to fall deeper
On the 4-hour chart, XRP bulls fight to hold the 78.6% Fibonacci retracement level at $0.917. The digital asset faces massive profit-taking as several on-chain metrics indicate XRP is poised for a deeper correction.
%20[13.31.17,%2007%20Apr,%202021]-637533935180297768.png)
XRP MVRV (30d) and Active Addresses charts
The MVRV ratio (30D), a metric that shows the average profit or loss of XRP tokens moving in the past 30 days, has entered the danger zone above 40%, which is usually indicative of a significant upcoming correction.
XRP/USD 4-hour chart
Additionally, the digital asset experienced a massive spike in the number of active addresses, which also happened on February 1 when XRP hit a peak of $0.72 before collapsing within the next 24 hours.
The next support level is the 26 EMA on the four-hour chart located at $0.824, followed by the 61.8% Fibonacci retracement point at $0.758.
Nonetheless, a rebound from the 78.6% Fibonacci level at $0.917 should drive the Ripple price toward the psychological level of $1 and as high as the previous peak of $1.19.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin 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?
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?