Key Takeaways
- XRP price has been trading flat, sustaining finely above the crucial support levels, indicating the token is due to a larger price action
- Despite a drop in the volume, the buying pressure continues to mount which may be a bullish factor that may raise the levels beyond $0.6 soon
- The low user activity may hinder the progress of the rally but the rising development activity may keep up the confidence in the token in the long run
The rounds of the final ruling of the Ripple vs SEC lawsuit have largely benefited its native token, XRP, which has seen a magnificent recovery in recent times. The price was largely stuck within a very narrow region, but the anticipations and the speculations revolving around the case have triggered one of the finest recoveries in its history. The price rise in the past few days has been more than moderate, and hence the token is looked at as one of the most exciting opportunities in the crypto space.
The lawsuit against the Securities and Exchange Commission (SEC) is expected to be resolved this summer, and the judgment is likely to roll out in favour of the company. A positive outcome may trigger a strong XRP price rally that may lift the price beyond $2. Despite the fact that the crypto markets may remain highly volatile, XRP may continue to expand its adoption as the demand for the token may skyrocket.
Read more: Crypto Market Cap sustains, Ethereum Price Surges to $ 21,000
XRP (XRP) Technical Overview
Source: Tradingview
- The XRP price has been extremely bullish for nearly a month and hence is believed to maintain a similar momentum until it reaches the desired milestone
- The price has been trading along the lower trend line since then which has been offering a strong base to rebound in case of a bearish action
- The XRP price is currently testing the lower trend line which also coincides with the 50-day MA levels in the short term
- Besides, the ADX is incremental which is believed to trigger a significant rebound with the XRP price that may rise high to reach $0.53 initially and surge close to $0.58 very soon
XRP On-Chain Overview
XRP Daily Active Address
Source: Santiment
The popularity and demand of a platform are determined by how active its users are. The Daily Active Address records these addresses that are actively participating in any form of trade. It records all the addresses, regardless of whether it is a buy, a sell, or a swap address, but only once at a time. A rise in the metrics indicates huge user activity, which may further impact the value of the token too.
Woefully, the active address count for the XRP price appears to have dropped heavily in the past few days. After witnessing a major spike, the DAA levels began to drop and gained the previous levels indicating a drop in the user activity, which may in turn reduce the volatility, depleting the price movements.
Additional Read: Ripple Price Prediction
XRP Development Activity
Source: Santiment
The development activity of the project is recorded within the GitHub repositories, which are generally public and easily accessible to all. A high level of development activity indicates the project is serious about its business potential and will likely deliver new features in the future. The development activity gauges the project’s commitment to creating a strong and working product by constantly polishing and upgrading features.
The development activity in this case is surging significantly after experiencing a massive drop from the immediate highs. The rising activity indicates the development team behind the project is thriving hard to strengthen the platform which makes the market participants bullish on the token which may highly impact the price later.
XRP MVRV Ratio
Source: Santiment
The MVRV ratio is the comparison between the current market value or the capitalization of the token to its realized capitalization to get a fair value. This value determines whether the current price of the token is undervalued or overvalued. If the current value is higher than the fair value, then the price is considered overvalued, which may attract a minor pullback as the bears may extract some profit.
Besides, the plunged MVRV ratio indicates the price has been largely undervalued, which may attract huge liquidity, impacting the value of the token in the longer time frame. The ratio is rising high, indicating the price is gaining value and soon may reach the desired milestone soon.
Concluding Thought
The XRP price appears to have gained significant volume in recent times which has intensified the bullish momentum to a large extent. However, the drop in user activity may hinder the progress of the rally but the rising development activity indices have significant confidence over the platform and hence impact the price positively.
