XRP has a positive outlook based on network value metrics. A magnetic zone just below market price could cause a short-term pullback.
Ripple (XRP) is trading above the resistance zone of the mid-range and is likely to rally towards the range top of $0.7. Short-term sentiment is also very bullish.
However, demand from the spot market was weak. Local resistance near $0.63 has been strong since mid-July. AMBCrypto analysis shows accumulation is underway, but will this be enough to fuel a rise to the highs of the range?
On-Chain Indicators Suggest Bullishness
Source: Santiment
Development activity is low in absolute terms and has been declining recently, which is not encouraging for long-term investors.
The number of daily active addresses has stabilized since reaching a sharp peak in mid-July following the SEC lawsuit ruling, and network growth has remained stable, with a slight increase since June.
Source: Santiment
After the sharp price drop in early August, the average coin age has started to trend upwards, indicating that tokens are accumulating. At the same time, dormant circulation is also low, indicating that tokens are moving less ahead of high selling pressure.
The short-term MVRV was positive, suggesting holders were taking some profits, but it was still nowhere near the mid-July highs, with XRP’s rally being heavily hampered by profit-taking and a shift in overall market sentiment at the time.
Liquidity Drives XRP Price Drop
Source: Hiblock
AMBCrypto found that liquidation heatmap data showed bearish hues, with liquidation levels clustered in the $0.58 to $0.59 zone.
Although this was marked as a target, a clean sweep of these levels could also trigger a bullish bounce for XRP, which could extend to the range high of $0.7.
Read Ripple (XRP) Price Prediction 2024-25
In other news, Ripple’s Chief Legal Officer Stuart Aldeloti noted that the Kraken case confirms that there are no such things as crypto securities.
He thought this was bad news for the SEC because that is the argument the agency uses to influence regulatory policy through enforcement.
