- XRP price is nearing the end of its symmetrical triangle consolidation, hinting at a breakout to $2.
- The network growth for the remittance token has seen a huge explosion, suggesting that a massive move is around the corner.
- Ripple is making headway with partnerships and sales despite the lawsuit with the SEC, showing a strong increase in its fundamentals.
XRP price has been consolidating below a crucial trend line for nearly two months. However, a breakout seems to be around the corner as Ripple gets squeezed between vital support levels and resistance barriers.
The next breakout to occur will be one to behold as it could hold the key to a rally that could retest 2018 levels.
XRP price technicals are signaling massive breakout
XRP price has been forming multiple bullish patterns on a higher time frame, signaling a bright future. Considering the price action between August 9 and November 2, the remittance token has set up six lower highs and roughly five higher lows.
Connecting these swing points using trend lines results in the formation of a symmetrical triangle pattern. As XRP price progresses through this formation, it gets squeezed, indicating a substantial reduction in volatility. This technical setup forecasts an 80% upswing, determined by adding the distance between the first swing high and swing low to the breakout point.
A decisive close above $1.137, coinciding with the 50% Fibonacci retracement level, will confirm the start of an uptrend. Such a move will propel XRP price to the supply zone, ranging from $1.237 to $1.417.
While the initial leg-up is crucial, a decisive daily close above $1.417 will trigger a move toward $2. In a highly bullish case, the XRP price will retest the 161.8% Fibonacci extension level at $2.324, A run-up that would constitute a 104% ascent from $1.137.
The last leg-up to the next Fibonacci level will put XRP price at $3.226, just under the all-time high at $3.317.
While the technicals predict a bold target for XRP price, the on-chain metrics back up this claim with a highly bullish outlook.
XRP network growth is a metric that tracks the number of new addresses being created on the XRP Ledger (XRPL). A spike in this measure suggests an increase in investor activity, as a result, it could indicate a potential inflow of new capital.
Lately, this fundamental index has skyrocketed past 2021 highs, hinting that a massive and explosive move is brewing for the remittance token.
Similar growth is being witnessed in the daily active addresses (DAA), which is currently hovering around 75,000. This level was last seen roughly 540 days ago, indicating a tremendous interest among investors in XRP at current price levels.
While these two on-chain metrics are going crazy, the volume transacted on the XRPL has not increased significantly. It is hovering under $4 billion and has been declining since August. Often, when a breakout is accompanied by an increase in volume it is more reliable. Investors should pay close attention to this metric, therefore, to time the breakout and confirm it.
While technical and on-chain metrics are leaning bullish, Ripple’s recent quarterly report shows that it saw a 200%+ increase in its XRP sales quarter-over-quarter. Interestingly, this sale comes from its product On-Demand Liquidity (ODL) which leverages the use of XRP to transfer money across borders.
Despite the SEC’s lawsuit against XRP and Ripple, its sales have zoomed past previous highs, and the report adds,
Transaction volume (measured in dollars) over RippleNet has more than doubled since last year and ODL transactions are up 130% quarter over quarter. In Q3, ODL transactions accounted for ~25% of total volume. All XRP sales this quarter are attributed to the growth and adoption of ODL.
Additionally, Ripple forayed into the NFT market by allocating a $250 million Creator Fund to support creators, brands and marketplaces to explore new use cases for non-fungible tokens (NFTs) on the XRP Ledger.
On the CBDC front, Ripple is collaborating with the Royal Monetary Authority of Bhutan “to pilot a Central Bank Digital Currency (CBDC) using Ripple’s CBDC solution.” This fundamental growth coupled with bullish technicals and on-chain metrics leads us to believe a colossal breakout move is on the horizon.
Ripple Price Analysis: XRP spikes to $0.91, support found?
- Ripple price analysis is bullish for the rest of the day.
- XRP/USD saw heavy selling earlier today.
- Support found around $0.91.
Ripple price analysis is bullish today as a strong lower low has been set at $0.91, with buying pressure returning right now. Therefore, we expect bears to be exhausted, leading XRP/USD higher later today.
The market has seen strong selling pressure over the last 24 hours. The market leaders, Bitcoin and Ethereum, are down by 6.07 and 7.1 percent, while Ripple (XRP) has lost almost 9 percent.
Ripple price movement in the last 24 hours: Ripple breaks $1.02 support, finds support at $0.91
XRP/USD traded in a range of $0.9367 – $1.06, indicating strong volatility over the last 24 hours. Trading volume has increased by 35.61 percent, totaling $4.27 billion, while the total market cap trades around $44.745 billion, ranking the coin in 7th place overall.
XRP/USD 4-hour chart: XRP looks to reverse from $0.91
On the 4-hour chart, we can see slight rejection for further downside for the Ripple price as bears are exhausted after a strong selloff earlier today.
Ripple price has seen consolidation in an increasingly tighter range above $0.102 support over the past week. The $1.02 mark was initially reached on the 18th of November after a strong decline from the $1.35 previous major swing high.
Despite the $1.02 support holding, further lower lows were set over the week, slowly building up pressure in the market. Yesterday, another lower high was set at $1.06, leading to more downside overnight.
Ripple price continued lower to $1.02 when a sharp break lower was finally seen over the past hours. Currently, XRP/USD has found low around $0.91, likely leading to recovery over the next 24 hours.
Ripple Price Analysis: Conclusion
Ripple price analysis is bullish today as further downside currently gets rejected after a spike to $0.91 earlier today. Therefore, XRP/USD has likely found a new low, leading to a retracement over the next 24 hours.
While waiting for Ripple to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.
XRP holds key support while indicators point to short-term recovery
- Ripple started a recovery wave above a key support level of $1.024.
- XRP price started an upside correction as indicators suggest a short-term recovery.
- The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.
XRP is in the process of forming a triple bottom price pattern boding more upside, for the pair priced against the US dollar., XRP price recently found support at the pattern’s base during the formation of the third bottom. Now, Ripple is at a crossroads – a spike in selling pressure may drive a bearish breakout, whilst technical indicators signal a bullish reversal. It all depends on whether or not a critical support level holds.
XRP rejected above the triple bottom at $1
XRP has found support above $1.024 and started a bullish recovery similar to peer altcoins. The XRP price has found footing at the $1.024 level for the third time making it a triple bottom pattern.
If there is increased demand at the current price level it will push the XRP price towards its double top level at $1.108. However, the 20 and 50-period exponential moving averages may act as minor hurdles at $1.076 and $1.108.
The MACD has closed the first histogram above the 0 mark, indicating a bullish reversal. While the RSI is still holding at 44, a crossover above 50 may encourage investors to go long. In that case, the XRP price might spike towards $1.165. Additional gains could lift the price towards the next key hurdles at $1.218 or $1.284
XRP 12-hourly chart – Triple bottom to drive uptrend
If XRP disappoints to start a new spike above the $1.081 level, it could extend losses. Initial support on the downside is near the $1.024 level.
The upward trend that started on September 21 also extends to significant support at the $1.024 mark. Therefore, a break below the $1.024 support level might push the price further down. The next critical support level is near $0.963, below which the price may fall to the $0.888 level.
XRP price consolidates as Ripple bulls eye a 15% run-up
- XRP price is hovering above the $1.01 support level, anticipating a potential retest before an upswing originates.
- A breakdown of this level could lead to a buy opportunity at $0.98 before Ripple rallies to $1.17.
- A daily close below the $0.92 foothold will invalidate the bullish thesis.
XRP price has been on a downtrend for roughly two weeks and shows that a short-term reversal could be near. Market participants need to watch for two immediate support levels that are likely to facilitate this bullish outlook.
XRP price to pull a 180
XRP price has dropped roughly 23% since November 10 to where it currently trades – $1.04. The downswing is likely to retest the $1.01 support floor formed by the November 18 swing low. This will create a triple tap setup, suggesting that a short-term reversal in momentum is likely.
In this scenario, the XRP price could attempt to retest the 50% retracement level at $1.17. This run-up would constitute a 15% ascent from $1.01.
While this scenario makes sense, a breakdown of the $1.01 support floor will suggest that a further downswing is possible. However, this move does not invalidate the bullish thesis but provides investors with a buy opportunity at $0.98. Investors can expect a bounce off this level to propel XRP price to the same level as before at $1.17. This move would constitute a 19% climb.
XRP/USDT 4-hour chart
While things are looking up for the remittance token, a breakdown of the $0.98 support level will create a lower low and invalidate the bullish thesis. This move would also suggest a weakness in buying pressure and set the stage for further losses. In this situation, market participants can expect XRP price to drop by about 6% to $0.92.