- The ripple ricochets off in preparation for a massive recovery above the median line of the ascending channel.
- MVRV’s on-chain metric model shows that XRP is back in the buy zone.
- A correction will appear if Ripple fails to close the day above the 4 hour 200 SMA.
Ripple is trending up after the recent breakdown to $ 0.35. The losses that XRP suffered were spread across the market. Several preliminary levels of support did little to stop the sharp decline, including $ 0.55 and $ 0.4. Meanwhile, the cross-border token bulls have regained control and are ready for another surge to $ 1.
Ripple is fighting for another outbreak
The decline to $ 0.35 appears to have been a boon, allowing more investors to enter the market at a lower price. XRP has bounced back from the slump and is now switching hands at $ 0.48. On the upside, bulls are battling the 50 Simple Moving Average (SMA) hurdle on the 4-hour chart.
Trading above this critical level should pave the way for profits above the rising median of the parallel channel. Another break above $ 0.55 will trigger massive buy orders in anticipation of gains facing $ 1. Currently, the path with least resistance is on the upside, particularly with the Relative Strength Index (RSI) on the 4-hour chart bouncing off the oversold region and heading towards the center line.
XRP / USD 4 hour chart
Santiment’s MVRV on-chain model shows that Ripple is back in the buy zone. This metric measures the average profit or loss of the cross-border tokens that have moved in the last 30 days compared to the price when each XRP token last moved.
A low MVRV ratio shows that most investors are at a loss or have barely balanced their investment, making them unlikely to sell. On the other hand, when the MVRV is high, most traders are usually profitable and most likely to sell.
Ripple MVRV diagram
As a result, the improvement in network growth is another bullish signal. The following table shows the recent consistent increase in the number of new addresses joining the network. Such a surge indicates that user adoption is increasing and is a bullish signal for the token. Therefore, XRP is likely to continue the upward trend while improving network growth.
Wavy network growth
Look at the other side of the fence
It’s worth noting that if the immediate resistance at 50 SMA on the 4-hour chart remains unwavering, Ripple’s rebound may not materialize. In addition, the center border of the channel is said to hamper growth and increase selling pressure. On the flip side, support at the 200 SMA must be protected at expense to avert losses to $ 0.35.
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