XRP price is looking for a platform to rest after the recent downtrend. This short-term correction is a result of the recent breakout and because of its correlation with Bitcoin. Regardless of the recent downturn, Ripple is worth another look as two on-chain stats suggest a bright future for the altcoin.
Technical data and on-chain stats are aligned
XRP price appears to be stabilizing in the four-hour demand zone, which extends from $0.746 to $0.777 after breaking out of a rising wedge pattern on Feb. 17. This retracement should now be restored as indicated by technical data and on-chain stats.
A relief rally is likely to propel XRP by nearly 10% to $0.853 from a conservative standpoint. If buying pressure continues to build, the transfer token may retest the $0.913 resistance barrier.
While technical data is slightly optimistic about XRP price, on-chain indicators suggest the token is poised to explode.
The one hour active address stat shows a huge increase from 4,621 to 19,629 in the last 24 hours. This increase indicates an increase in investor interest in XRP at current price levels. More often than not, this spike precedes a price pump. So this suggests that the altcoin is ready to move higher.
On February 12, the number of one-hour active addresses increased from 5,076 to 23,569. Interestingly, the price of XRP rose about 14% in the next 24 hours.
This claim is supported by the recent difference between the price and the on-chain volume for XRP. From February 16-18, total on-chain volume for XRP increased from 1.95 billion to 2.95 billion, representing a 51% increase.
However, the price fell nearly 12% over the same period, indicating a divergence. This technical formation predicts a bullish outlook for XRP. And points to a clear interest among on-chain participants at current price levels.
Despite the bullish on-chain indications, a possible increase in selling pressure could push XRP price to produce a four-hour candlestick that closes below $0.746. This development will skew the odds in favor of the bears and invalidate the rising position.
In this situation, market participants can expect the remittance token to crash 8% and tag the $0.687 support level. While this move is somewhat bearish from a short-term perspective, it doesn’t ruin the long-term bullish outlook. Therefore, renewed buying pressure around $0.687 to $0.651 will play a vital role in triggering another run-up for XRP.
This post What short-term technical and on-chain metrics indicate for XRP holders?
was published first on https://ambcrypto.com/what-technical-and-on-chain-metrics-indicate-for-xrp-holders-in-the-near-term/