- XRP price is consolidating midway through its recent breakout.
- A breakout from this tightening could result in an explosive move to $0.374.
- Invalidation of the bullish thesis will occur if Ripple loses the $0.316 support level.
XRP price shows a tight consolidation after a recent upswing, indicating that it is building up momentum for its next up-leg. Investors need to be patient and allow Ripple bulls to make their move.
Ripple price remains still
Ripple price had a slow start to its rally on January 1 as it slide 13% and formed a local bottom at $0.300. But XRP has recovered nicely since then. As the altcoin continues to auction at $0.344, investors need to be patient and watch the momentum indicator - Relative Strength Index (RSI).
The RSI is hovering above 50, which means the bulls are defending their stance. Hence, the uptrend is still intact. Therefore, a breakout from this consolidation is likely to result in a move that tags the $0.374 hurdle.
Depending on the momentum, the remittance token could retest the equal highs at $0.397.
XRP/USD 4-hour chart
Adding credence to the potential upswing is the Active Addresses metric, which has seen a quick uptick in the last few hours. Specifically, the number of 1-hour active addresses has noted a huge increase from 2000 to 17,140.
This sudden uptick indicates that investors are interested in XRP at the current price level. Due to the ongoing consolidation, this spike could indicate accumulation for the remittance token.
 [08.29.19, 05 Jan, 2023]-638084852399274500.png)
XRP 1-hour active addresses
While things are looking up for Ripple price, a sudden drop in Bitcoin price could cause altcoins to slide lower as well. In such a case, if XRP price produces a four-hour candlestick close below $0.316, it will create a lower low and invalidate the bullish thesis.
This development could see Ripple slide lower and retest the $0.288 support floor.
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
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Cardano founder Charles Hoskinson proposed integration of Bitcoin Cash into a Cardano Partnerchain. 65% of 11,340 voters voted in favor of, to the contrary “No”, meaning “Ayes” have it, but this is pending confirmation.
Render Price Prediction: RNDR could hit $10 after successful breakout with ecosystem’s LD token launchpad
Render (RNDR) price is trading with a bullish bias, boasting higher highs, with the AI crypto coin not only outperforming its sector peers, but also doing better than most altcoins in the broader cryptocurrency space.
Tesla updates payment methods to include DOGE, Dogecoin price rises 6%
Tesla Inc., Elon Musk’s American multinational automotive and clean energy company headquartered in Austin, Texas, is the latest catalyst for Dogecoin (DOGE) price rally.
Sui daily transactions reach 41 million, overtakes Solana with SUI price primed for recovery
Sui (SUI) price has dipped 3 % in the past 24 hours and remains down 15% in the last week. However, other metrics suggest something could be at play in the Sui ecosystem as daily transactions skyrocket.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.