XRP to rally? What to expect from Ripple

XRPLedger’s native token (XRP) rose on November 29 as the altcoin remained steady above $1.7300 and moved higher along with Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and other leading cryptocurrencies. increased by 12%.

XRP on-chain indicators point to price increase

XRP investors increased their on-chain activity between November 16-29, and Santiment noted several increases in the active addresses metric. Spikes represent an increase in activity along with an increase in trading volume on exchange platforms.

The network’s realized profit/loss metric, used to determine the net profit/loss of all tokens traded on a given day, shows that XRP investors have been trading profitably since November 4. Positive increases above the neutral line indicate investors are taking profits.

Typically large positive increases are associated with the possibility of higher selling pressure on XRP; Investors need to watch this metric closely for signs that the trend will reverse.

The profit/loss ratio of the daily on-chain trading volume is 6.73, meaning that profitable trades dominate as the XRP price rises.

On-chain measurements, along with technical and other indicators, support the bullish thesis for the XRP price.

XRP price and active addresses, profit/loss realized on the network, ratio of daily on-chain transaction volume to profit/loss | Source: Santiment XRP is poised to retest the April 2021 top

Technical indicators indicate the possibility of a prolonged price rally and a retest of the April 2021 high of $1.9669 for the altcoin; 12.85% increase from current level. A successful breach of this level could erase investors’ losses over the past three years.

The relative strength index reads 88, which means XRP is overvalued. While this is typically considered a sell signal and indicates an impending correction in XRP, the moving average convergence divergence (MACD) indicator points out that further gains are likely.

Green histogram bars above the neutral line support the thesis that the XRP price is rising.

The $3 target is a psychologically important level for XRP; In January 2018, the altcoin reached a record high of $3. The altcoin has yet to revisit this level in the last six years.

XRP/USDT daily price chart | Source: Crypto.news

XRP may find support in the instability zone between $1.2643 and $1.4033. A correction could send the altcoin into this support zone before further corrections are made. Once the fair value gap is filled, XRP may continue its rise towards the April 2021 peak of $1.9669.

XRP derivative investors are bullish

Coinglass data shows that XRP derivative investors on Binance and OKX are bullish on the altcoin. There is a possibility of an increase in the spot market as the long/short ratio of derivative investors in major stock exchanges exceeds 1.

XRP Derivatives data analysis | Source: Coinglass

Open interest in XRP futures exceeded $2.41 billion on November 29. The increase in open positions is a sign of the increasing relevance of the token and increasing demand among market participants.

XRP futures open interest (USD) | Source: Coinglass Strategic considerations

According to Macroaxis.com, XRP’s three-month correlation with Bitcoin is 0.82. This metric shows that a significant market movement in Bitcoin could impact the XRP price.

Bitcoin started to recover after an initial drop to the $90,700 level on Tuesday. If BTC registers a large decline in price in the coming weeks, the XRP price trend may be negatively affected.

Other factors driving the market for XRP are the US Securities and Exchange Commission’s lawsuit against Ripple and progress in regulatory clarity regarding crypto in states.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.