Will XRP surpass the $3 resistance amid declining network activity?
The cryptocurrency market is having a temporary relief following a poor start to the week.
Bitcoin dropped to the $114k region on Monday but has now bounced back and is trading close to the $116k resistance level.
XRP, Ripple’s native coin, tested the $2.95 support on Monday but is now back and trading at $3 per coin.
However, the $3 resistance remains a tricky one for XRP as Ripple faces declining network activity.
Ripple’s network activity continues to dwindle
There is an increase in demand for XRP, as indicated by the rising funding rate and Open Interest (OI).
However, this growing demand has not been reflected in on-chain activity.
Data obtained from CryptoQuant show that active addresses on the XRP Ledger (XRPL) are down 55% to approximately 22,500 from roughly 50,000 in mid-July.
This decline indicates reduced network engagement, which ultimately results in low transaction volume and a decline in the demand for the token.
If the decline in the Active Addresses metric persists, XRP’s price could stagnate around the $3 mark or experience selling pressure in the near term.
However, the market is still looking ahead to the FOMC meeting tomorrow as the Fed will reveal its interest rate decision.
Cutting the interest rate could be a bullish signal for BTC, XRP, and the broader cryptocurrency market.
XRP eyes the $3.1 resistance level despite declining network activity
The XRP/USD 4-hour chart remains bearish as XRP has underperformed over the last few days.
The coin is trading at $3.04, up from the $2.95 resistance level it tested on Monday.
The XRP chart shows a descending trend line support around the $2.95 level, suggesting that the coin could break out in the near term.
The Relative Strength Index (RSI) has dropped to 50 after hitting 61 on Saturday, suggesting that XRP is facing selling pressure at the moment.
If the RSI dips below the neutral 50, it would indicate a fading bullish momentum, and this could see XRP retest the 50-day Exponential Moving Average (EMA) support at $2.95.
The MACD lines are also around the neutral region, with a crossover into negative territory suggesting a bearish trend.
Failure to hold the $2.95 support could see the 100-day EMA at $2.81 and the 200-day EMA at $2.56 become strong support zones.
On the flip side, if the RSI goes into the positive region, with the blue MACD line remaining above the red signal line, XRP could surge towards the $3.18 resistance level in the near term.
An extended bullish run would see XRP target the next major resistance level at $3.4.
Traders are mainly focused on tomorrow’s event, as it would determine the price action for the remainder of the week.
The post Will XRP surpass the $3 resistance amid declining network activity? appeared first on Invezz
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Will XRP surpass the $3 resistance amid declining network activity?
The cryptocurrency market is having a temporary relief following a poor start to the week.
Bitcoin dropped to the $114k region on Monday but has now bounced back and is trading close to the $116k resistance level.
XRP, Ripple’s native coin, tested the $2.95 support on Monday but is now back and trading at $3 per coin.
However, the $3 resistance remains a tricky one for XRP as Ripple faces declining network activity.
Ripple’s network activity continues to dwindle
There is an increase in demand for XRP, as indicated by the rising funding rate and Open Interest (OI).
However, this growing demand has not been reflected in on-chain activity.
Data obtained from CryptoQuant show that active addresses on the XRP Ledger (XRPL) are down 55% to approximately 22,500 from roughly 50,000 in mid-July.
This decline indicates reduced network engagement, which ultimately results in low transaction volume and a decline in the demand for the token.
If the decline in the Active Addresses metric persists, XRP’s price could stagnate around the $3 mark or experience selling pressure in the near term.
However, the market is still looking ahead to the FOMC meeting tomorrow as the Fed will reveal its interest rate decision.
Cutting the interest rate could be a bullish signal for BTC, XRP, and the broader cryptocurrency market.
XRP eyes the $3.1 resistance level despite declining network activity
The XRP/USD 4-hour chart remains bearish as XRP has underperformed over the last few days.
The coin is trading at $3.04, up from the $2.95 resistance level it tested on Monday.
The XRP chart shows a descending trend line support around the $2.95 level, suggesting that the coin could break out in the near term.
The Relative Strength Index (RSI) has dropped to 50 after hitting 61 on Saturday, suggesting that XRP is facing selling pressure at the moment.
If the RSI dips below the neutral 50, it would indicate a fading bullish momentum, and this could see XRP retest the 50-day Exponential Moving Average (EMA) support at $2.95.
The MACD lines are also around the neutral region, with a crossover into negative territory suggesting a bearish trend.
Failure to hold the $2.95 support could see the 100-day EMA at $2.81 and the 200-day EMA at $2.56 become strong support zones.
On the flip side, if the RSI goes into the positive region, with the blue MACD line remaining above the red signal line, XRP could surge towards the $3.18 resistance level in the near term.
An extended bullish run would see XRP target the next major resistance level at $3.4.
Traders are mainly focused on tomorrow’s event, as it would determine the price action for the remainder of the week.
The post Will XRP surpass the $3 resistance amid declining network activity? appeared first on Invezz
Read More