XRP, the native token of XRPLedger, saw a 12% gain on Nov. 29, staying above $1.7300 as it rallied alongside other top cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. On-chain indicators for XRP signaled price growth, with increased activity among traders and spikes in active addresses and transaction volume on exchanges. The network realized profit/loss metric showed traders transacting profitably since Nov. 4, with dominant profitable transactions as XRP price rose. These on-chain metrics, along with technical indicators, support a bullish outlook for XRP price.
Technical indicators point towards a potential extended price rally for XRP, with a retest of $1.9669, the peak from April 2021. The relative strength index for XRP is overvalued at 88, typically signaling a sell, but the moving average convergence divergence indicator suggests further gains. XRP could find support between $1.2643 and $1.4033 in an imbalance zone, potentially correcting before continuing towards the April 2021 peak. Derivatives traders for XRP on exchanges like Binance and OKX are bullish, with a long/short ratio crossing 1 and open interest in XRP futures crossing $2.41 billion on Nov. 29.
Strategic considerations for XRP include its three-month correlation with Bitcoin at 0.82, indicating that significant movements in the Bitcoin market could impact XRP price. As Bitcoin started a recovery after a drawdown, any major decline in its price could negatively affect XRP. Other factors influencing XRP’s price include the U.S. Securities and Exchange Commission’s lawsuit against Ripple and regulatory clarity on cryptocurrencies in the U.S. It’s essential for traders to monitor these developments along with on-chain and technical indicators for a better understanding of XRP’s price movements.
In conclusion, XRP has shown positive signs of price growth, with on-chain metrics, technical indicators, and derivatives traders pointing towards a potential rally for the altcoin. While there may be challenges ahead, such as potential corrections and market correlations with Bitcoin, XRP’s ability to maintain its current momentum could lead to a retest of the April 2021 peak. Traders should stay informed about the latest developments in the market and closely monitor key indicators to make informed decisions regarding XRP investments. This article provides educational insights and is not investment advice.
