• XRP price is holding above a crucial moving average support level on the 4-hour chart.
  • Ripple faces weak resistance ahead and could quickly move up.
  • On-chain metrics show that XRP price is overextended and poised for a correction.

XRP price has had an impressive 240% rally since April 3, hitting a three-year high of $1.96 and moving closer to ranking third again in terms of market capitalization, only $6 billion behind BNB at the moment. 

XRP price must hold above crucial support level for a significant rebound

On the 4-hour chart, XRP has been trading above the 21 SMA since the beginning of April. This moving average has rejected any downward price action and led Ripple to significant rebounds. 

Holding this crucial support level could drive XRP price toward the previous high at $1.96 as there is not a lot of resistance ahead.

xrp price

XRP/USD 4-hour chart

However, the MVRV ratio (30d), which shows the average profit or loss of XRP tokens moved in the last 30 days, hit levels not seen since 2018. This indicates that XRP price is extremely overextended and due for a correction. 

xrp price

XRP MVRV ratio (30d) chart

The inability of XRP bulls to hold the 21 SMA support level would be significant. A 4-hour candlestick close below this moving average could drive XRP price down to the 50 SMA located at $1.35. 

In the worst-case scenario, if the 50 SMA fails to hold, Ripple could even drop as low as $1 at the 100 SMA level.

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

This crypto investment strategy will help you triumph after the bear markets

This crypto investment strategy will help you triumph after the bear markets

A brief technical and on-chain analysis on a few cryptos. Here, FXStreet’s analysts evaluate where some of the hottest cryptos on the market could go next.

More Cryptocurrencies News

New sources affirm USDD is on a path to collapse like Terra’s UST

New sources affirm USDD is on a path to collapse like Terra’s UST

Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash. 

More Tron News

Why Dogecoin, Shiba Inu, and LUNA 2.0 should be on your watchlist

Why Dogecoin, Shiba Inu, and LUNA 2.0 should be on your watchlist

A brief technical and on-chain analysis on a few cryptos. Here, FXStreet’s analysts evaluate where some of the hottest cryptos on the market could go next. 

More Dogecoin News

How trade SafeMoon price for a quick profit?

How trade SafeMoon price for a quick profit?

SafeMoon price gets ready for a quick run-up amid a bearish challenge. As a result, SAFEMOON has been consolidating below a crucial resistance barrier. Investors can expect the altcoin to resume its run-up soon.

More SafeMoon News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP