11.5 C
Manchester
May 18, 2021
Image default
Altcoin

Ripple’s price analysis: XRP ready for breakout and possible 41% moves

XRP saw a rapid rise in price during the month of November

Ripple’s XRP had one of the best months in history in November, as the price of the third largest digital asset jumped more than 300%, from $ 0.22 to $ 0.82. the highest level since May 2018. At the time of writing, the XRP / USD is changing hands at $ 0.61, virtually unchanged on a daily and weekly basis.

XRP’s market capitalization closed at $ 27.9 billion, while its average daily trading volume was $ 10 billion, down from a record $ 30 billion on November 24.

XRP’s on-chain metrics promise more growth

XRP’s daily active addresses reached a record 41,599 during the high in late November. So far, the number has dropped to less than 20,000 amid declining market volatility. However, it is still significantly higher than the average for the year.

Daily active addresses of Ripple

Daily active addresses (DAA) is a famous metric on the network that helps to estimate users’ network activity. Refers to the number of addresses that participated in a transaction on a given day. Each address is counted, making this metric more accurate than counting a transaction.

DAA allows access to how active a particular blockchain is. The increasing number is considered a bullish signal as it implies that the currency is being actively used.

XRP stuck in a symmetrical triangle

From a technical point of view, the XRP moves within a symmetrical triangle formation, characterized by inclined and upward trend lines connecting a series of sequential peaks and bottoms. This continuation pattern results from a period of consolidation after a sharp price movement that denotes a feeling of uncertainty in the market. The direction of the break will define the additional momentum.

XRP's 12-hour chart

12-hour XRP chart

The bullish development will be confirmed by a candlestick closing above the $ 0.62 downward trend line resistance. In that case, the bullish momentum may gain strength, with the target estimated at $ 0.89. This target represents a 41% price increase. It is determined by measuring the distance between the widest point of the triangle and the potential breaking point.

On the other hand, following a similar rationale, a sustainable move below the $ 0.58 triangle support will result in a substantial decline to $ 0.336. This development will invalidate the immediate bullish forecast and bring more bears to the market.

Source: FXStreet

Related posts

Tron makes official arrival of his USDJ stablecoin

Anupreet Kaur

These three cryptocurrencies can still reach $ 500 before the end of the year

Anupreet Kaur

Can ETH and altcoins benefit from Bitcoin correction?

Anupreet Kaur

Leave a Comment