Ripple Price Prediction: XRP holds fragile support amid weak on-chain metrics
- XRP hovers above $1.05 support while bulls struggle to extend gains.
- XRP’s weak on-chain activity, reflected in the Network Growth and Active Addresses metrics, weighs on price action.
- XRP’s technical outlook remains weak, marked by subdued momentum indicators and falling major moving averages.
Ripple (XRP) shows subtle signs of recovery above $1.05 on Tuesday, with the move to around $1.07 ending three straight days of losses amid a pressured broader cryptocurrency market.
Escalating war between the United States (US) and Iran has weighed on sentiment since last weekend, with both parties exchanging attacks, while shipping through the Strait of Hormuz has stopped and the US has reinstated the blockade of Iranian ports.
Subdued on-chain activity lags XRP recovery
Interest in XRP remains significantly suppressed, as evidenced by on-chain indicators. According to Santiment data, newly created addresses on the XRP Ledger (XRPL) have eased to roughly 800 on Tuesday, down from approximately 2,000 the previous day. Looking back, users joining the network peaked at 6,600 on June 30, suggesting that appetite for risk assets is cooling. If the drop is sustained, demand for XRP would narrow further, limiting potential recovery.
Addresses actively transacting on the protocol paint a similarly grim picture, declining to roughly 2,200 on Tuesday, down from approximately 4,000 the day before. This drawdown shows that fewer users are actively sending and receiving assets on the XRPL. An extended decline means less on-chain demand and a reduced tailwind to sustain the current mild rebound.
Price analysis: XRP defends vital support, gains still capped
XRP retains a bearish near-term tone despite a slight increase above $1.07 from the psychological support at $1.05. Still, the spot price holds below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs).
The Parabolic SAR support at $1.04, suggests some underlying demand, but the broader structure remains capped by the downward resistance trendline whose break price sits at $1.11. While the Moving Average Convergence Divergence (MACD) histogram is fading but slightly positive on the daily chart, the Relative Strength Index (RSI) at 40 hints that upside momentum is still limited and rallies are vulnerable below the major EMAs.
Initial resistance is seen at the downward resistance trendline break level at $1.11, ahead of the 50-day EMA barrier at $1.16, with the 100-day EMA at $1.26 and the distant 200-day EMA at $1.47 reinforcing a broader supply zone if recovery extends.
On the flip side, immediate support is offered by the Parabolic SAR level at $1.04. A daily close below this floor would likely open the door to a deeper pullback, keeping the pair entrenched in its bearish bias as long as it trades beneath the clustered EMAs overhead.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
