Assess the possibility of an XRP outbreak heading towards 1
The crypto market has seen some pretty sharp corrections since the beginning of this month, with the lowest being on December 4th. On that day, most of the large-cap coins dropped their market capitalization by 20-30%.
XRP, the market’s eighth largest cryptocurrency, was no exception during the aforementioned correction, falling from $ 0.92 to $ 0.60 in December. In the past few days, however, Ripples Coin has successfully stopped the downtrend.
The price has been consolidating around the 61.8% Fibonacci level so far.
XRP / USDT | Source: TradingView
On Thursday and Friday, XRP tried to break above the above levels but couldn’t stay there for long. The bulls have certainly stopped the downtrend, but are they strong enough to try a breakout again?
The light at the end of the street
During this phase, market participants are quite active trading XRP. As can be seen from the graphic below, the current number of active addresses is significantly higher than in May last year.
Number of active addresses in 24 hours | The source: mood
As the number of unique active addresses increased, the crowd began to speculate. Active addresses are certainly a good sign, but they don’t really indicate in which direction market participants are trending.
To see if there are any trends in the market, let’s take a look at some age-related indicators.
The consumption age has skyrocketed several times recently. Overall, however, it has remained on the downside so far. Essentially, this means that the previously inactive XRP doesn’t move much between addresses. It also means that selling pressure is not currently dominating the XRP market.
In addition, the average age of the coin is also increasing, showing that the HODLer is relentlessly holding onto the token in anticipation of a price increase.
Consumer age | The source: mood
In the presence of the current accumulation trend and without selling pressure, XRP could soon break out successfully. If he manages to climb above the 61.8% Fib level within the next few hours, the following days will be quite similar to the first days of October.
In fact, the asset is likely to regain $ 1 soon.
Here, it’s important to note that the likelihood of XRP falling further at this point is quite small. Additionally, it currently has strong support at $ 0.78. If XRP loses that line, it is expected to return to the USD 0.7 region.
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