- XRP price is approaching a supply barrier extending from $1.09 to $1.18.
- Ripple might retrace to the support level at $0.84 before it resumes an uptrend.
- On-chain metrics indicate no immediate threat to the optimistic outlook but reveal more room to the upside.
XRP price shows a slow down of its momentum after the recent impulse wave. Therefore, minor retracement or sideways movement seems likely before Ripple restarts its rally.
XRP price prepares for the next leg up
XRP price saw a 62% upswing to $1.06 from the swing low created on May 23 at $0.65. This massive climb shows signs of slowing down as it approaches the supply zone, ranging from $1.09 to $1.18. Due to the extent of the recent impulse wave, Ripple will likely retrace to support level at $0.84 before continuing its ascent.
Such a move will allow the buyers to recuperate their momentum and enable the remittance token to come back stronger. Under these conditions, XRP price is likely to rise to $1.32.
If the buying pressure continues to maintain at high levels beyond the said level, XRP price may soar another 18% to test $1.56.
Clearing these obstacles will allow Ripple a path to retest the supply barrier created in 2018.
XRP/USD 6-hour chart
Supporting this optimistic hypothesis is Santiment’s 30-day Market Value to Realized Value (MVRV) model. This fundamental index is used to determine the profit/loss of investors that purchased XRP in the past month.
At the time of writing, this metric was in the ‘opportunity zone’ at -22.22%, suggesting that the short-term holders are panic-selling and allowing the long-term holders to accumulate more. Thus, MVRV portrays a bullish outlook for Ripple.
XRP 30-day MVRV chart
Furthermore, the whale transaction count, a metric that tracks transfers worth $100,000 or more. A spike in this metric indicates that whales are either looking to book profits or reallocate their funds, which is a bearish signal.
Such transfers are currently hovering around 15, a 48% decrease from the recent uptick on May 24, suggesting no immediate threats despite the recent rally.
XRP whale transaction count chart
Investors should note that if the bullish thesis explained above depends on the fact that XRP price recoils from the support level at $0.84. However, a breakdown of this barrier will suggest an increased selling pressure and invalidate the optimistic narrative.
Under these conditions, Ripple may retrace toward the recent swing low at $0.65 or tag $0.642, the upper boundary of the demand barrier below it.
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
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.