- XRP price increased nearly 2% on Friday, inching closer to its $0.60 target.
- XRP holders await the February 20 deadline for updates on the SEC v. Ripple lawsuit.
- XRPLedger’s native token could see the $1 target back in play if on-chain metrics catalyze gains in XRP.
XRPLedger’s native token XRP price climbed to $0.5791 on Friday, inching closer to the $0.60 target. XRP price could eye a return to the $1 level with bullish on-chain metrics and likely positive developments in the SEC lawsuit.
Also read: Ripple unveils plans for crypto custody while XRP price trades sideways
Daily Digest Market Movers: Ripple on-chain metrics support XRP price gains
- XRP Volume has climbed to 1.81 billion on Friday, up from 578.41 million on February 10. The rise in volume is typically followed by an increase in the altcoin’s price, as seen in previous instances on Santiment. This is a bullish sign for XRP.
XRP Volume. Source: Santiment
- Network Realized Profit/ Loss metric, used to determine the profit/loss realized by traders on a given day, reveals a series of negative spikes, meaning XRP holders realized losses on several occasions between January 1, 2024 and February 15. This is consistent with capitulation and is likely to be followed by a massive price surge.
- The following Santiment chart shows that XRP price nearly doubled between September and November 2023 after consistent negative spikes in the Network Realized Profit/Loss metric.
- If the pattern repeats itself, it could make the $1 target relevant again and XRP price could witness a massive surge in its price in the following weeks and months.
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Network Realized Profit/Loss. Source: Santiment
- Developments in the SEC v. Ripple lawsuit typically influence XRP price. The next key deadline for the US financial regulator’s legal battle against Ripple is February 20. This will mark the end of the remedies-related discovery phase.
Technical Analysis: XRP price could revisit its 2024 peak and rally higher
XRP price is currently in an uptrend and the altcoin has climbed to a $0.5791 high on Friday. The asset is inching closer to resistance at $0.60. The 2024 peak of $0.6405 is back in play as a target for XRP price.
The Awesome Oscillator (AO) shows green bars, confirming that XRP price uptrend is in place. It has been consistently green and above zero for nearly the whole month of February 2024.
The Moving Average Convergence/ Divergence (MACD) indicator shows one green bar above the zero level, suggesting positive momentum is coming back to XRP. This supports the altcoin’s rally towards $0.60.
The key resistances for XRP are the $0.60 and the $0.64 level. Once XRP price flips these resistances to support, the next key target is the November 2023 peak of $0.75.
Consistent gains in XRP price could bring the 2023 peak of $0.9380 and the $1 psychologically important level, back in the narrative for the altcoin.
XRP/USDT 1-day chart
A daily candlestick close below Wednesday’s low of $0.5203 could suggest a sweep of support at $0.50 before XRP price resumes its climb.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.