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Key points
- Ripple found strong technical support above the last weekly price close.
- Santiment’s on-chain data highlights massive user adoption.
- Sygnum Bank rallies behind XRP as it has introduced cryptographic services for its clients.
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Ripple was among the hardest hit cryptocurrencies this week, after relationships new US regulations that would have hindered the industry. In just one day, XRP had a bleeding of 33% of its value.
Has Ripple’s XRP found a bottom?
The popular altcoin enjoyed a long-awaited bullish burst before the pullback, with XRP outperforming the top ten tokens in the cryptocurrency market.
Ripple is one of the main coins used for crypto payments from PayPal, while Sygnum Bank introduced XRP-related services for its customers this year, suggesting steady user growth towards 2021.
Looking at the technical data, a weekly close above the $ 0.50 level should reinforce the bullish sentiment towards XRP, which means that traders could aim for a price recovery towards $ 0.70 and, in definitive, in the area of $ 0.90.
The William Alligator indicator also supports a medium to long term bullish outlook for XRP as the price is trading above $ 0.50. Indeed, the recent sharp drop in prices may have given traders another chance to scale in XRP.
The Relative Strength Index (RSI) on the daily time frame was also extremely overbought and traded above the 90 zone region earlier this week.
Extremely overbought RSI readings are usually preceded by a healthy price correction, as we saw on November 25th. The index also shows further downside, which means that XRP could depreciate further in the coming days.
A weekly price close below the $ 0.50 support level, for example, could incite more short-term XRP selling pressure towards the September 2020 highs of around $ 0.35.
Again, this could be a great buying opportunity for XRP bulls.
On-chain data analysis from Feeling shows an increase in new daily active addresses, suggesting that new money is buying XRP.
The number of unique addresses transacting on the XRP network in a single day reached 24,408 this week, marking the highest output in this metric since May of this year.
Social commitment has also grown considerably.
The volume of social mentions has skyrocketed major social media platforms, reflecting the recent price appreciation and increased adoption by XRP users.
Traders will continue to monitor XRP over the next few days as this is a critical time for the direction of the cryptocurrency. It remains to be seen whether the market has changed and whether a significant fund has already been established.
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