[ad_1]
XRP Price Insights:
- Ripple (XRP) price has consolidated around the $0.55 territory after multiple unsuccessful attempts at reclaiming the $0.60 milestone last week.
- On-chain data trends show that XRP short-term traders have stopped taking profits after the eventful week of landmark partnerships and legal advances.
- Technical analysis indicators highlight $0.57 as the major price obstacle on the road, $0.60.
Ripple’s (XRP) price has consolidated around the $0.55 territory for the better part of last week. However, on-chain data trends reveal traders have stopped profiting after the eventful week of bullish XRP news events. Will this trigger another leg-up toward the $0.60 range?
XRP Holders Have Stopped Selling After Series of Bullish News Events
A vital on-chain indicator has flashed green signals that XRP price could make a positive start to the week.
Amid last week’s crypto market rally, Ripple (XRP) emerged one of the biggest gainers in the top 10 cryptocurrency rankings. Incidentally, as profits rose to milestone levels, a number of XRP traders began to book profits. In effect, XRP prices sharply retraced toward the $0.54 range by the end of the week.
However, Santiment’s Market Value to Realized Value (MVRV 30D) chart shows that things have taken a positive turn over the weekend. The MVRV data shows the net-financial position of recent buyers, by comparing the current market value to the holders’ average entry prices.
The chart below shows that as XRP price approached the $0.57 on October 24 the unrealized profits of those that bought XRP within the last 30-days rose to 8%. Notably, at that point, profits had exceeded 5.3%, which was the highest gains that XRP short-term traders last held in the previous 30-days. Investors instantly began to take profits while price swiftly dropped to weekly low of $0.54 by Friday.
However, the data now shows that XRP traders have stopped selling over the weekend. That MVRV chart above shows that unrealized profits accruing to XRP traders has been on the rise again since Friday, October 27.
This change in disposition could be attributed to the landmark partnership with prominent exchange Uphold, to facilitate cross-border transactions.
When MVRV metric begins to rise during a bull rally, it signifies that traders are growing optimistic and HODLing for the future rather than sell now.
Notably, between Friday October 27 and October 29, the short-term holders’ profits has grown from 4.24% to 6.4% while XRP price has also grown from $0.54 to $0.55 during that period.
If they look to extend their profits beyond last week’s peak of 8%, investors can expect XRP price to retest the $0.60 mark next week.
XRP Price Forecast: Road to $0.60 Next Week?
The bullish disposition among the short-term traders puts XRP in a prime positon to break above thee critical $0.60 next week.
Ripple (XRP) price currently trades at $0.56 as the bulls make attempts to stage another upswing in the coming week.
In the daily time frame, the upper Bollinger Band indicates that XRP will face initial resistance is at $0.57. However, if there’s a decisive breakout above that level, the bulls will likely trigger a larger upswing toward $0.60.
On the flip side, the lower Bollinger Band is at $0.52. If the bulls fail to defend this territory, the chances of reclaiming the $0.60 level in the coming could drop significantly.
Although unlikely, any drop below the $0.52 could open the doors to further reversal toward $0.50.
[ad_2]
Source link
