Altcoins, Cryptocurrency

XRP Market Update: On-Chain Metrics A Roadblock To Recovery?

  • Ripple secured a foundation at $0.67 after the massive weekly selloff to $0.52.
  • Overhead stress under $0.7 outcome in a retreat to $0.6.
  • The MACD shows that XRP is still in the bulls’ support.

Ripple sustained considerable damage under the battering jabs from the bears at the opening of the week. The dreaded downfall to $0.5 happened as XRP plunged to $0.52.

Meantime, a recovery happened quickly, with Ripple winning the lost ground above $0.6. The bulls extended the up leg toward $0.7, but the drive lost momentum at $0.67.

At the time of this article, it trades at $0.62 following a minor correction. Holding support at $0.6 is critical for the recovery of the uptrend. Still, Ripple may withdraw further before the bulls deliver another jab at $0.7.

XRP/USD Four-Hour Chart

XRP/USD price chart by Tradingview

On-chain metrics: A Roadblock To Ripple Recovery?

On-chain metrics represent a vital role in the achievement of most digital currencies. Learning the signals from the benefits of the metric, investors make informed decisions.

As per data from Santiment, the number of new addresses connecting the XRP has diminished over the last 30 days. In addition, the XRP price has been falling in tandem with the addresses. For instance, from a 30-day high of nearly 4,800 addresses created on May 24, XRP created only 2,055 addresses on the network on June 23.

On May 24, Ripple exchanged hands at $0.86, but the price had fallen to $0.64 on June 23. Decreasing network growth is usually a bearish signal, ascertaining that the project is losing traction. Hence, if the metric fails to turn around, XRP price will likely delay recovery or continue exploring the rabbit hole.

Ripple Network Growth Model

Ripple network growth model by Santiment

That said, the Moving Average Convergence Divergence (MACD) hints at the trend remaining in the bulls’ hands despite the correction from $0.68. Realize that the bullish outlook emanates from the MACD line (blue) sustain the divergence above the signal line. Besides, holding above $0.6 support may allow bulls to focus on recovery toward $1.

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