- XRP price looks to rally 30% to $0.784 after a 34% crash on June 21 and 22.
- An increase in daily active addresses paints a bullish picture, adding a tailwind to the bullish thesis.
- The reset of 365-day MVRV further strengthens the uptrend narrative.
XRP price witnessed a massive sell-off as Bitcoin price retested the May 19 sell-off. After setting up a bottom on June 22, Ripple looks to rally to a crucial resistance level.
XRP price attempts an upswing
XRP price crashed roughly 40%, breaking through the May 23 swing low at $0.703. This massive sell-off formed a bottom at $0.509 on June 22 and has pushed Ripple up by 17% so far. This uptrend is likely to continue to $0.784, nearly a 30% gain from the current position, $0.593.
The immediate resistance barrier at $0.643 will be the first significant blockade that has to be overcome for a persistent rally. Breaching this level will propel XRP price to its intended target at $0.784.
XRP/USDT 4-hour chart
Supporting this bullish thesis is the increase in daily active addresses from 9,355 to 17,743 from June 19 to June 22. This 90% uptick represents that investors interacting with the XRP blockchain increased, indicating a potential “buy the dip” mentality.
XRP daily active addresses chart
Further adding a tailwind to the potential upswing is the 365-day Market Value to Realized Value (MVRV) model, which has dipped below the zero-level after 138 days. This fundamental index is used to measure the average profit/loss of investors who purchased XRP in the past year.
Currently, the 365-day MVRV is at -13.54%, suggesting that the short-term traders are selling, allowing the long-term holders to accumulate. Since XRP is moving to strong hands, this transfer is an optimistic sign.
XRP 365-day MVRV chart
While the two on-chain metrics described above point to a bullish outlook, failing to slice through the resistance level at $0.643 will indicate weak bulls and might trigger a bearish outlook.
Adding credence to a potential bearish outlook are large transactions worth $100,000 or more, which rose from 722 to 1,615 between June 20 to June 22.
This 123% increase suggests that whales might be looking to reallocate their funds or book profits, which is a grim outlook for the resurgence of XRP price.
XRP large transactions chart
Therefore, a rejection at $0.643, followed by a breakdown of the recent swing low at $0.509, will invalidate the bullish thesis. In such a case, XRP price is likely to slide 6% to the immediate support level at $0.475.
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.