XRP Price Prediction: Ripple on track to hit $2 as on-chain metrics reset

  • XRP price bounces off with force after a brief dip into the $1.37-$1.47 demand zone.
  • The funding rate, weighted sentiment and MVRV have reset, allowing the bulls to launch Ripple higher.
  • A breakdown below $1.37 will invalidate the bullish outlook.

XRP price shows a consolidation in play that could lead to a new yearly high. The recent recovery from the dip into the demand zone suggests the presence of strong buyers.

XRP price remains focused on $2

XRP price continues a steady climb since the crash in late April. Since then, Ripple has set up three higher highs and four higher lows, indicating a steady uptrend. The recent dip on May 9 saw XRP price enter the demand barrier that stretches from $1.37 to $1.47.

Now, investors can expect the remittance token to surge toward the immediate resistance at the 162% Fibonacci extension level, located at $1.65.

A successful breach of this wall will allow the buyers to charge toward $1.76, a level last seen in mid-April. Depending on the buying pressure, XRP price could either take its time to overcome these levels or just slice through them with consecutive green candlesticks.

Regardless, XRP price looks primed to tag $2.

XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

The funding rate for XRP price is 0.093%, after dropping from 0.226% on May 8. Such a low funding rate, coinciding with the recent crash, indicates that the highly leveraged long positions are either liquidated or closed, allowing sidelined investors to step in and ride the wave to $2.

Moreover, the brief collapse on May 9 could have caused the weighted sentiment to enter the negative territory, portraying that investors are not optimistic about XRP price, which is bullish from a counter-sentiment perspective.

XRP funding rate, weighted sentiment chart

XRP funding rate, weighted sentiment chart

Another metric that portrays the bullishness around XRP is the 30-day Market Value to Realized Value (MVRV) model, which tracks the network’s profit/loss of investors that purchased XRP in the past month.

The MVRV value for Ripple currently stands in the opportunity zone at 5.5%, which indicates that only 5.5% of the network participants are in profit. Hence, the possibility of a correction induced by investors booking profits is almost zero.

xrp 30-day mvrv chart

XRP 30-day MVRV chart

All in all, XRP price looks bullish, but a potential spike in bearish momentum that pushed the remittance token below $1.37 would invalidate the bullish outlook and kickstart a bearish one.

Under such conditions, Ripple price could slide toward the 50% Fibonacci retracement level at $1.31. Breaching this level could trigger an 11% downswing to $1.16.

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

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

XRP price eyes deeper losses, as 200-DMA looks at risk

XRP price is licking its wounds so far this Saturday, having reached the lowest in three months at $0.7691 on Friday. XRP bears are set to breach the 200-DMA, with a test of May lows likely. Ripple confirmed a symmetrical triangle breakdown on the daily chart. The path of least resistance appears to down despite the tepid bounce.

More Ripple news

SafeMoon Price sees a dead cat bounce before the next downswing kicks in

SAFEMOON price is fading the recovery momentum this Saturday after falling for four days in a row earlier this week. Technical up on the 4H chart paints a bearish picture. RSI remains bearish, as more weakness likely in the near term.

More SafeMoon News

DOGE price eyes $0.1950 if key 100-DMA support caves in

Dogecoin sellers refuse to give up, as the bearish momentum extends into the fifth consecutive day on Saturday. Dogecoin price eyes a break below key 100-DMA support on the daily chart. The May 19 flash crash lows at $0.1950 remain on the sellers’ radars. 

More Dogecoin news

Cardano price stalls four-day losing streak, but not out of the woods yet

Cardano (ADA/USD) is snapping its four-day losing streak, attempting a minor recovery on Saturday amid a sluggish tone seen across the crypto market. ADA price is down about 3% over the week, having risen 750% from the start of the year. 

More Cardano News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast