XRP’s Bullish Momentum: On-Chain, Technical and Market Forces at Play

On Nov. 29, XRPLedger’s native token XRP saw a 12% gain and stayed steady above $1.7300, rising along with major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.

From Nov. 16 to 29, XRP traders boosted their on-chain activity. Santiment noted spikes in the active addresses metric, accompanied by a rise in exchange platform transaction volume. The network’s profit/loss metric reveals that XRP traders have been making profitable transactions since Nov. 4. A high ratio of 6.73 for profitable to loss transactions during the price rally indicates profitable trades are dominant. These on-chain metrics, along with others, support a bullish outlook for XRP’s price.

Technical analysis suggests a potential extended price rally. There’s a likelihood of XRP retesting its April 2021 peak of $1.9669, which would be a 12.85% increase from the current level. While the relative strength index shows XRP is overvalued (a possible sell signal), the moving average convergence divergence (MACD) indicator points to further gains, with green histogram bars above the neutral line backing a price rally. XRP could find support between $1.2643 and $1.4033 during a correction before aiming for the 2021 peak again.

Coinglass data indicates that XRP derivatives traders on Binance and OKX are bullish. When the long/short ratio on major exchanges crosses 1, it hints at a possible rally in the spot market. On Nov. 29, the open interest in XRP futures surpassed $2.41 billion, signaling growing relevance and demand for the token.

XRP has a 0.82 three-month correlation with Bitcoin. So, significant Bitcoin price movements, like its recovery after dropping to $90,700 on Tuesday, can impact XRP. Also, the U.S. Securities and Exchange Commission’s lawsuit against Ripple and the progress in regulatory clarity for crypto in the U.S. are other factors that could influence XRP’s price trend.