The digital asset Ripple (XRP) has attracted attention by experiencing a notable 10.72% increase over the past 24 hours, reaching $2.37 at the current moment. This remarkable rally has showcased its robust upward momentum in comparison to major digital currencies.
Factors such as a growth in daily active addresses, an escalating MVRV ratio, and optimistic technical indicators have further solidified its position as one of the top-performing digital assets in the market.
Breaking Resistance Levels
XRP’s price action is a reflection of substantial bullish sentiment. Recently, the price broke through a consolidation phase, surpassing the $2.30 resistance level.
The emergence of a bullish pennant flag pattern has also indicated the potential for additional gains in the future. Hence, achieving the $3 target hinges on successfully breaching the $2.59 resistance level.
Significant Increase in MVRV Ratio Indicates Market Confidence
The Market Value to Realized Value (MVRV) ratio stood at a noteworthy 314.74% presently. Historically, such high levels have typically marked phases where profits are taken.
Nevertheless, the sustained uptrend in this metric has signaled a strong sense of confidence in the market, with both new investors and long-term holders maintaining their positions. This upward trajectory implies continued positivity among traders and investors.
XRP’s Growing Network Activity
The number of daily active addresses has surged to 26,144 as of January 2nd, highlighting an uptick in network activity. This steady increase underscores the expanding adoption and utility of the XRP ecosystem.
This surge in active engagement showcases heightened interest and reinforces the sustainability of the ongoing rally.
Will the Bullish Momentum Continue?
The bullish outlook for XRP is further confirmed by technical indicators. The Relative Strength Index (RSI) has remained above 58, indicating moderate momentum with the potential for further expansion.
Furthermore, the 9-day moving average has crossed above the 21-day moving average, resulting in a golden cross formation. These signals collectively suggest that the upward trend is likely to endure.
Understanding the Divergence Between Price and Address Activity
The price-Daily Active Addresses (DAA) divergence chart shows a current divergence of -316.79%.
While negative divergence may suggest short-term caution, the broader price movement continues to align with a strong market sentiment. Therefore, the disparity is unlikely to hinder the ongoing rally.
The surge of XRP to $2.37 underscores the market’s strong confidence and solid fundamentals, underpinned by growing adoption and network activity.
Bullish technical indicators, such as the golden cross and rising RSI, offer additional momentum for future growth. Overcoming pivotal resistance levels like $2.59 is essential in sustaining this upward trend.