Ripple price climbs back above key $0.60 level despite 70% decline in XRP transaction volume
- XRP price surged past the $0.60 resistance, trading at $0.61 on Tuesday.
- The altcoin has noted a 70% decline in its transaction volume between April 1 and 8, signaling loss of interest among traders.
- XRP active addresses declined by 36% in the same timeframe, signaling decline in on-chain activity.
Ripple (XRP) price is $0.61 on Tuesday after climbing above the psychologically important $0.60 level for the first time in a week on Monday. XRP Ledger’s native token has sustained its gains from Monday, but it has been trading broadly sideways in April so far as on-chain activity signals waning interest from market participants.
Daily digest market movers: Ripple on-chain activity declines
- Ripple active addresses and transaction volume are two key metrics that measure the relevance, demand and interest of XRP among traders.
- Data from crypto intelligence tracker Santiment shows that between April 1 and 8, XRP active addresses dropped by 36% and transaction volume took a 70% hit. These metrics support a thesis of waning interest among traders and a drop in demand for XRP among market participants.
- Typically, these on-chain metrics would be associated with an upcoming correction in the altcoin’s price.
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XRP Active Addresses and Transaction Volume
- Ripple announced plans to launch USD-backed stablecoin on April 4, fueling anticipation among XRP holders and crypto influencers on X. Crypto experts believe the stablecoin launch could boost utility for XRPLedger’s native token XRP. A crypto expert behind the X handle @XRPcryptowolf believes the launch of the new stablecoin is a bullish development for XRP. The development is likely catalyzing the recent gains in XRP.
The new XRPL stablecoin is extremely bullish for $XRP
— XRPcryptowolf (@XRPcryptowolf) April 8, 2024
Technical analysis: XRP price climbs back above $0.60
XRP price started an uptrend after hitting its April 4 low of $0.5623. XRP price formed a higher high in its 4-hour chart, making a comeback above its psychologically important $0.60 level. On Tuesday, XRP price climbed to $0.61.
The green bars above the neutral line on the Awesome Oscillator support XRP’s recent gains. The Relative Strength Index (RSI) climbed to 62.83, up from the neutral level at 50 (seen on Monday), signaling increased bullish momentum.
In its uptrend, XRP price’s first target is Monday’s high of $0.6265. Further up, XRP may face resistance at $0.65 on its way to the year-to-date peak of $0.7440. XRP price has failed to flip this resistance into support throughout mid-March 2024.
XRP/USDT 4-hour chart
On the downside, a candlestick close below the $0.60 level could invalidate the bullish thesis and predict a decline to $0.5944, the 50% Fibonacci retracement level of the price climb to Monday’s high of $0.6265.
XRP price could find support at the April 4 low of $0.5623, in the event of further correction in the altcoin.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP 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 risk assets like Bitcoin, 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. This has been observed in Bitcoin and Litecoin.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
