XRP could rise to $0.5608 despite weak on-chain data

Source Fxstreet
  • XRP investors are still at an average profit of 32% despite recent sideways price action.
  • XRP's futures open interest and trading volume have been weak since October 1.
  • XRP could rise to $0.5608 if it maintains bullish momentum and crosses above the 100-day and 200-day SMA.

Ripple's XRP is trading near $0.5140 on Tuesday following declines in several of its on-chain data, which indicates declining investor interest. The remittance-based token could rally toward $0.5608 after crossing above the upper trendline resistance of a symmetry triangle.

XRP suffers waning investor interest

XRP's on-chain data has remained fairly quiet since around October 1, when investors realized profits of over $134 million.

The most recent modest spike was in XRP's Age Consumed on October 20 after prices moved lower and investors realized losses of about $34 million. The Age Consumed metric tracks previously idle coins and spikes when these tokens move between addresses.

As a result, XRP's Market Value to Realized Value (MVRV) Ratio is 32%, indicating that all investors are making an average profit of 32%. However, the percentage of total supply in profit plunged from 90% on October 1 to 70% on Tuesday.

XRP Key On-chain data

XRP Key On-chain data

Meanwhile, XRP's open interest has remained below $800 million and is trending downwards. Open interest is the total number of unsettled contracts in a derivatives market.

The decline in open interest signifies low investor interest or rising liquidation of XRP positions. XRP's futures volumes indicate the former, as the cryptocurrency's trading volume is low, hovering between $500 million and $1.5 billion since October 1.

XRP Futures Volume

XRP Futures Volume

The XRP long/short ratio from the total volume is 0.935 and has remained below 1 in the past month, indicating that most traders are slightly bearish on the coin.

Ripple technical analysis: XRP could rise to $0.5608

Ripple's XRP is trading near $0.5140, up 2% on the day.

The remittance-based cryptocurrency has crossed above the upper boundary of a symmetrical triangle and the 50-day Simple Moving Average (SMA).

If XRP maintains the momentum and crosses above the 100-day and 200-day SMA, it could rally toward $0.5608. The Relative Strength Index (RSI) and Stochastic Oscillator have crossed above their midlines, indicating bullish pressure is dominant.

XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

However, a rejection near the 200-day SMA could send its price toward the support level at $0.4860. A daily candlestick close below $0.4860 will invalidate the thesis and send the price lower toward $0.4500.

Ripple FAQs

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
On the Eve of Nonfarm Payrolls, How Will Employment Data Affect Stock Market Trends and Rate Cut Expectations?TradingKey - The U.S. Bureau of Labor Statistics will release the February non-farm payroll (NFP) data at 8:30 AM ET on March 6. This release comes as the market is oscillating between Middle East geo
Author  TradingKey
10 hours ago
TradingKey - The U.S. Bureau of Labor Statistics will release the February non-farm payroll (NFP) data at 8:30 AM ET on March 6. This release comes as the market is oscillating between Middle East geo
placeholder
Gold slumps below $5,100 as US Dollar gainsGold price (XAU/USD) tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar (USD). The US employment report for February will take center stage later on Friday. 
Author  FXStreet
19 hours ago
Gold price (XAU/USD) tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar (USD). The US employment report for February will take center stage later on Friday. 
placeholder
How to Survive Bitcoin Winter? Will It Still Fall Below $60,000 in 2026?Recently, after meeting with the CEO of Coinbase, Donald Trump pressured Congress to push for the CLARITY Act. Driven by this news, Bitcoin (BTC) prices once surged past $73,000, successf
Author  TradingKey
Yesterday 09: 55
Recently, after meeting with the CEO of Coinbase, Donald Trump pressured Congress to push for the CLARITY Act. Driven by this news, Bitcoin (BTC) prices once surged past $73,000, successf
placeholder
US Dollar Index gathers strength to near 99.00 on Middle East tensions, robust US services data The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.00 during the early European trading hours on Thursday. The DXY edges higher amid uncertainty and persistent geopolitical risks in the Middle East.
Author  FXStreet
Yesterday 08: 21
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.00 during the early European trading hours on Thursday. The DXY edges higher amid uncertainty and persistent geopolitical risks in the Middle East.
placeholder
Gold rises as safe-haven demand increases on Iran warGold price (XAU/USD) extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East.
Author  FXStreet
Yesterday 06: 24
Gold price (XAU/USD) extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East.
Related Instrument
goTop
quote