XRP Network Activity Soars as Top Trader Turns Bullish
Key Takeaways
- XRP’s price action seems to be contained within a tight range.
- A weekly close outside the $1.72 to $1.00 pocket will determine the direction of the trend.
- Renowned analyst Peter Brandt appears to be leaning bullish while on-chain activity explodes.
XRP could resume its uptrend towards new all-time highs upon the break of the $1.17 resistance barrier.
XRP Well-Positioned For New All-Time Highs
Ripple’s XRP token could be ready to make a bullish run.
According to 40-year trading veteran Peter Brandt, XRP’s price action is “constructively” governed by a multi-year head-and-shoulders pattern that has formed on its weekly chart.
The sixth-largest cryptocurrency by market cap skyrocketed by a massive 230% in late March, marking the breakout of the consolidation pattern. Then, XRP reversed to the head-and-shoulders’ neckline at $0.61 to shake out some of the so-called “weak hands.”
Prices have bounced back above the $1.00 psychological level since Jul. 20 where the asset is currently consolidating.
The Fibonacci retracement indicator, measured from the Apr. 14 high of $1.96 to the Jun. 22 low of $0.51, suggests that XRP is currently stuck in a tight range. The 61.8% Fibonacci retracement level at $1.17 is acting as resistance, while the 50% retracement level at $1.00 is containing prices from a steep decline.
A decisive weekly candlestick close above the overhead barrier could signal the resumption of the uptrend. Under such unique circumstances, XRP could enter a new uptrend to meet the target of the head-and-shoulders pattern at $3.42.
Network Activity Explodes
When considering the rising number of active addresses on the XRP network, the bullish thesis holds. Roughly 6,700 addresses are interacting with the network, representing a 394% jump from last week.
A spike in the number of active wallets tends to be followed by rising prices. Still, it is imperative to wait for a sustained candlestick close outside the $1.72 to $1.00 price range to determine where XRP is heading next.
Slicing through resistance might push this token to new all-time highs while losing the underlying support barrier could result in correction to $0.85 or even $0.70.
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