XRP, also known as Ripple, exhibited remarkable performance over the previous week, establishing itself as a top gainer among prominent digital assets. Nevertheless, upon closer examination of crucial indicators, it appears that XRP may encounter hurdles in maintaining its current upward trajectory unless substantial shifts occur in network activity and investor outlook.
Ripple’s Notable Bullish Breakthrough
Ripple witnessed a significant surge in value during the last week, successfully surpassing key resistance levels.
Upon reviewing XRP’s daily price chart, it’s evident that the asset surged by more than 14%, concluding the week near $0.59 following a nearly 4% uptick in the closing trading session.
This upward momentum propelled XRP above its short-term moving average (depicted by the yellow line), which had previously acted as a barrier.
The surge in XRP’s value also transitioned it into a bullish trend, as exemplified by its Relative Strength Index (RSI) reaching around 60, indicating an expanding bullish momentum.
However, as of the present moment, XRP has experienced a minor retracement, declining by over 1% and presently trading close to $0.58.
Despite this recent drawback, XRP maintains a positive outlook, with its breakthrough above the short-moving average hinting at the potential for ongoing bullish trends in the near future.
Ripple’s Price Rally Lacks Support from Key Indicators
Examination of Ripple’s (XRP) trading volume and daily active addresses revealed that the recent price surge failed to generate substantial responses.
On September 13th, there was a marginal increase in daily active addresses, peaking at over 20,000. Yet, this surge was short-lived, dropping to approximately 17,000 the next day.
Likewise, XRP’s trading volume encountered a brief escalation, reaching about $1.8 billion on September 13th. However, the volume dwindled thereafter, settling at around $1 billion in subsequent days.
The absence of sustained engagement in these crucial metrics points toward a requirement for heightened activity or buying pressure to maintain the favorable momentum exhibited in XRP’s valuation.
Although the price surge managed to breach major resistance levels, the fundamental network activity failed to provide the necessary support to extend the rally.
XRP Maintains its Position Among Prominent Assets
Analysis of data sourced from CoinMarketCap disclosed that Ripple (XRP) ranked as the second-highest performer over the past week, posting an approximate 11% increase.
The sole asset that surpassed Ripple during this period was Toncoin (TON), which witnessed a gain exceeding 19%.
At present, Ripple’s market capitalization stands at roughly $33.1 billion, cementing its status as the seventh-largest cryptocurrency concerning market capitalization.