- XRP has a positive outlook based on the network value metrics.
- A short-term drop was possible due to the magnetic zones just below the market price.
Ripple [XRP] was trading above the mid-range resistance zone and presented a good chance of a rally toward $0.7, the range high. The short-term sentiment was strongly bullish as well.
Yet, the demand from spot markets was weak. The local resistance around $0.63 has been formidable since mid-July. AMBCrypto’s analysis showed that accumulation was underway- but is this enough to drive a rally to the range highs?
On-chain metrics point toward bullishness
Source: Santiment
The development activity was low as an absolute value and its trend has decreased recently as well. This was not encouraging for long-term investors.
The daily active addresses saw a wild peak in mid-July after the ruling in the SEC case but have quietened down since then. The network growth was stable and has grown slightly since June.
Source: Santiment
After the sharp price drop in early August, the mean coin age began to trend higher. This showed the token was being accumulated. At the same time, the dormant circulation was also low, implying fewer token movements that could precede high selling pressure.
The short-term MVRV was positive showing holders were at a minor profit, but it was nowhere close to the mid-July highs. The XRP gains were heavily impeded by profit-taking activity and a market-wide sentiment shift back then.
Liquidity favors an XRP price drop
Source: Hyblock
AMBCrypto found that the data from the liquidation heatmap had a bearish tinge. Liquidation levels were densely clustered around the $0.58-$0.59 zone.
This marked it as a target, but it was also likely that a sweep of these levels could see XRP rebound bullishly. Such a move could extend toward $0.7 the range highs.
Read Ripple’s [XRP] Price Prediction 2024-25
In other news, Stuart Alderoty, Chief Legal Officer for Ripple, noted that in the Kraken case, it was confirmed that there was no such thing as crypto asset securities.
He believed that this is bad news for the SEC since this is the argument on which the SEC hinges their regulation-by-enforcement policy.