Ripple Price Forecast: XRP getting ready for a 50% upswing as consolidation hits the elastic limit

  • XRP’s consolidation is almost hitting the breaking point hence the possibility of an upswing to the 50-day SMA.
  • A buy signal could come into the picture in the coming days, as seen on the daily chart.
  • The MVRV on-chain is in a critical buy zone and hinting at a potentially massive breakout.

Ripple’s overhead barriers are still in place, as highlighted on the 4-hour chart. The seller congestion at $0.3 is an uphill battle, so is the 50 Simple Moving Average. XRP/USD is trading at $0.27 amid extended consolidation. However, this sideways trading is approaching a breaking point to give way for the expected upswing to $0.4.

Ripple eyes massive liftoff to $0.4

The cross-border token has continued to explore lower levels following the rejection at $0.3. XRP/USD seems to have entered a consolidation period that has forced the Bollinger bands to squeeze on its daily chart. Squeezes are indicative of low volatility periods and are usually succeeded by significant price movements. The longer the contraction, the higher the probability of a strong breakout.

This technical index does not provide a clear path about the direction of Ripple’s trend. As a result, the area between the lower and upper band is a reasonable no-trade zone. Only a daily candlestick close above or below this area will determine where the pioneer cryptocurrency is headed next.

At the time of writing, XRP is exchanging hands at $0.27 while struggling to stay above the Bollinger Band middle boundary. To sustain the uptrend, Ripple is required to close the above this critical level as well as the 200 Simple Moving Average on the daily chart.

XRP/USD daily chart

XRP/USD daily chart

The moving average convergence divergence, or MACD, adds credence to the optimistic outlook. This technical indicator, follows the path of a trend and calculates its momentum, appears to be turning bullish within the same time frame after the 12-day exponential moving average crossed above the 26-day exponential moving average. For now, the odds for a bullish impulse have increased significantly.

A buy signal is likely to present on the daily chart in the coming few days. The call to increase positions in the cross-border token will manifest in a red nine candlestick. If validated, an increase in buying volume is likely to push XRP to higher levels above $0.3, thus paving the way for gains above $0.4.

XRP/USD daily chart

XRP/USD daily chart

Santiment’s MVRV shows the average profit or loss of all XRP holders. The metric measure the relative change in the price of each token from the time it last moved. For instance, an MVRV with a figure of 2 suggests that all XRP are averagely at two times their initial investment.

At the moment, MVRV is below zero, which means that most of the holders are at a loss compared to the price of the tokens when they moved last. This is a substantial buy area as it indicates recovery is long overdue.

Ripple MVRV chart

Ripple MVRV chart

It is worth keeping in mind that Ripple may fail to rally as expected, especially if it fails to close the day above the middle boundary of the Bollinger bands and the 200 SMA. A surge in selling pressure may validate a breakdown towards $0.2, mostly if the critical support at $0.25 gets broken.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Nightmares repeat as BTC flash crashes

Bitcoin price slid roughly $7,000 on Wednesday after Elon Musk tweeted that Tesla will not accept BTC. Ethereum price dropped only $270 and is in recovery mode. Ripple eyes a dip into the demand zone ranging from $0.941 to $1.156 before it attempts to rise higher.

More Cryptocurrencies News

Polygon sets sights on new all-time high despite recent flash crash

MATIC price shows a massive spike in buying pressure that has undone the recent crash. A sustained buying pressure here could propel Polygon price to the 161.8% Fibonacci extension level at $1.287. A breakdown of the support barrier at $0.872 will invalidate this uptrend.

More Polygon News

Ripple struggles to break through stiff resistance

XRP price seems to have suffered from the sell-off caused by Elon Musk's announcement that Tesla stopped accepting cryptocurrency payments. XRP price slid by more than 22% over the past 24 hours to hit a low of $1.20. Buyers seem to have quickly scooped up more tokens at a discount.

More Ripple News

Tesla ditches Bitcoin as payment but may accept Dogecoin instead

Dogecoin price plunged by over 25% in the past 24 hours, reaching a low of $0.38. DOGE fell in tandem with the rest of the crypto market following Elon Musk's announcement that Tesla is suspending vehicle purchases using Bitcoin. The meme-coin could be awaiting a recovery if Tesla decides to accept DOGE as payment instead. 

More Dogecoin News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast