XRP Price Prediction: Ripple on the brink of 40% upsurge targeting $0.38

Ripple is among the cryptocurrencies that are likely to have benefited from the Dogecoin’s rally. After holding tight in consolidation, the cross-border token spiked, briefly stepping above $0.3. The least resistance path is currently on the upside, as the bulls fight to sustain the uptrend.

Ripple begins the much-awaited technical breakout

XRP recovered majestically from the SEC-triggered freefall in December and hit a 2021 high at $0.37. The barrier marked the end of the rally for the cross-border token, leading to the consolidation period. As discussed before, a symmetrical triangle formed on the 4-hour chart suggests that Ripple is on the verge of a massive move.

A trendline is drawn connecting consecutive lower highs when creating the triangle. On the other hand, another trendline links the asset’s higher lows. The pattern represents a period of consolidation.

Both a breakout and a breakdown are expected from the triangle. A breakout identities the beginning of an uptrend, while a breakdown implies that a downtrend is in the cards. The two movements have similar percentage targets measured from the triangle’s highest to the lowest point.

XRP confirmed the upward movement on stepping above the 50 Simple Moving Average and 200 SMA. Trading above the upper trendline hints at a potential upswing to $0.38. However, the immediate resistance at the 100 SMA must come down to add credibility to the bullish outlook,

XRP/USD 4-hour chart

Ripple’s on-chain metrics flip bullish

The MVRV metric, developed by Santiment, a behavioral analysis platform, considers the average profit or loss of all XRP holders in relation to the last time each token last moved. An MVRV ratio of two suggests that the holders of XRP return on investment (RoI) are 2x their initial investment.

Holders tend to sell when they are in profit and hold onto their tokens if they are at a loss. A ratio between one and zero suggests that the market is “undervalued,” and most holders realize losses. Therefore, they are adamant about selling.

At the moment, XRP’s MVRV ratio is at -6, which is extremely low. What this tells you is that investors prefer to hold and not sell. In other words, this a bullish signal and offers an opportunity to buy in anticipation of higher prices in the future.

Ripple MVRV chart

Looking at the other side of the picture

If the 100 SMA hurdle on the 4-hour chart remains intact, the upswing to $0.38 will either take long to materialize or be aborted altogether. Notably, the 50 SMA and 200 SMA are providing immediate support. Therefore, if the support is lost, XRP may resume the downtrend toward $0.25, erasing the accrued gains.