Ripple Price Analysis: XRP fights crucial resistance for a massive bullish impulse
- The cross-border cryptocurrency on the verge of a breakout if bulls push past 50 SMA on the 4-hour chart.
- Ripple’s On-Demand Liquidity becomes an everyday solution for unbanked Mexicans.
- A declining network growth may hinder XRP’s recovery to $0.75.
Ripple seems to be getting ready for the much-awaited breakout toward $0.75 (2021 high). Support at $0.35 played a vital role in stopping the massive freefall from extending further. Meanwhile, XRP is looking forward to a substantial breakout as long as the Simple Moving Average (SMA) on the 4-hour chart is broken.
Ripple’s On-Demand Liquidity takes root in Mexico
Mexico is the fastest growing cryptocurrency market globally. Ripple is at the forefront of ensuring that the 125 million unbanked people have a smooth path in and out of crypto. Daniel Vogel, CEO of Bitso, in a recent interview with Ripple’s CTO David Schwartz, said:
We want to make sure that people can go in and out of crypto…seamlessly using our rails.
On-Demand Liquidity is a service that allows fiat currency conversion using crypto technology. In our case, we’re assisting in converting US Dollars to Mexico Pesos, where the digital asset XRP is a bridge currency. We’re processing close to 10% of the remittances from the US to Mexico through ODL.
Ripple price on the brink of a breakout
XRP is trading at $0.42 after bouncing off support at $0.4 and settled above $0.4. The 50 SMA is limiting price movement on the 4-hour chart. However, a breakout above this level may trigger a potential breakout targeting $0.75. The Relative Strength Index appears to validate the uptrend on crossing past the midline.
XRP/USD 4-hour chart
Following the nerve-shattering breakdown last week, Ripple experienced an exodus of whales. It was believed that investors timed the breakout to cash out for profit after the December freefall.
Santiment’s holder distribution tool highlights the return of the whales but at a gradual rate. For instance, since February 1, holders with XRP between 1 million and 10 million have increased by 30 only. In other words, recovery due to the return of whales is consistent but gradual.
Ripple holder distribution
Looking at the other side of the fence
Ripple’s network growth has remained downward since the massive price drop. The network growth by Santiment tracks the number of new addresses joining the network daily.
Ripple network growth
Declining network growth is a bearish signal as it affects the regular inflow and outflow of tokens on the protocol. Therefore, XRP’s recovery could remain squashed in the near term.