Ripple’s 30% rally bows to selling pressure under $0.7

24 มิ.ย. 2021

• Ripple gained ground to $0.67 after the massive weekly selloff to $0.52.
  Overhead pressure under $0.7 results in a retreat to $0.6.
  The MACD reveals that XRP is still in the bulls’ hands.
  

Ripple suffered greatly under the battering jabs from the bears at the beginning of the week. The feared downfall to $0.5 occurred as XRP tumbled to $0.52.

Meanwhile, a recovery followed swiftly, with Ripple gaining the lost ground above $0.6. The bulls stretched the up leg toward $0.7, but the momentum lost steam at $0.67.

At the time of writing, trades at $0.62 following a minor correction. Holding support at $0.6 is crucial for the resumption of the uptrend. However, Ripple may retreat further before bulls throw another jab at $0.7.

Ripple’s weakening on-chain metrics could be hindering recovery

On-chain metrics play a key role in the performance of most crypto assets. Understanding the signals from the metrics helps investors make informed decisions.

According to data from Santiment, the number of new addresses joining the XRP has dwindled over the last 30 days. Moreover, 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, only 2,055 addresses were created 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. Declining 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.

On the flip side, 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.

Ripple price intraday price levels

Spot rate: $0.62

Trend: Bearish

Volatility: Low

Support: $0.62 and $0.52

Resistance: $0.7 and $0.85