Ripple Price Prediction: XRP gains momentum amid mild growth in on-chain activity and volume
- XRP extends gains above the reclaimed $1.10 pivotal level on Tuesday.
- The XRP Ledger protocol has attracted 24,000 active addresses, signaling growing investor interest.
- XRP eyes a bullish transition, but the 50-day EMA caps the immediate upside.
Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).
US-Iran strikes persist
The US military pressed on with a tenth straight day of strikes, with explosions reported in Sirik, Bandar Abbas, Qeshm Island, Chabahar, and Konarak. Iran responded by targeting US assets throughout the Gulf region.
Geopolitical tensions remain elevated as US President Donald Trump has warned Iran of repercussions following US service member casualties.
The Fear & Greed Index dipped to 25 on Tuesday, placing market sentiment firmly in Extreme Fear territory, down from 29 the day before.
If sentiment continues to weaken, the recovery may lose traction. Conversely, a rebound in sentiment could fuel a more constructive market outlook.
“Looking ahead, macro developments are likely to be the main catalysts for the market. The European Central Bank (ECB) and Federal Reserve (Fed) rate decisions, particularly the July 29 Federal Open Market Committee (FOMC) meeting, will be closely watched, while the escalating conflict between the US and Iran remains an additional source of uncertainty for broader risk sentiment,” researchers at K33 stated in Tuesday’s Ahead of the Curve report.
XRP attracts modest on-chain activity
Interest in XRP is growing mildly but broadly, as reflected in the Active Addresses metric. CoinGlass data shows that the number of wallets interacting with the XRP Ledger (XRPL) by sending or receiving assets has remained steady around 23,000 on Monday and Tuesday, up from 20,000 last Sunday. This growth suggests that user interest is returning, which may continue to boost demand and support recovery in the short to medium-term.
Price analysis: XRP bulls eye short-term breakout
XRP trades at $1.13, keeping a capped tone as price remains below the 50-day, 100-day and 200-day Moving Average Exponentials (EMAs), which align as overhead resistance at $1.15, $1.24 and $1.44 respectively.
The recovery off the recent lows near $1.00 is underpinned by constructive momentum, with the Relative Strength Index (RSI) hovering above the midline at 55 on the daily chart and the Moving Average Convergence Divergence (MACD) ticking higher in positive territory. However, these signals only hint at improving demand rather than a clear trend reversal while the pair is still trapped beneath the EMA stack.
On the topside, immediate resistance emerges at the 50-day EMA around $1.15, and a sustained break above this level would expose the next bullish objective at the 100-day EMA near $1.24, ahead of the more strategic barrier at the 200-day EMA around $1.44. On the downside, the latest close at $1.13 acts as a near-term pivot, while the former downtrend-line break level at $1.09 offers a more significant support area. A daily close back below this latter floor would likely revive selling pressure and re-open the path toward deeper retracement levels.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
