Ripple (XRP) Poised for a 20% Price Surge: Key Indicators Suggest Breakout
TL; DR
If Ripple investors who bought XRP within the last month sell their coins they may incur a double-digit loss.
The Ripple price is expected to rise towards $0.60 since it is currently trading at $0.504.
The MVRV and NVT indicators predict that XRP will experience a bullish price reversal in the coming days or weeks.
Introduction
Based on its potential on the market Ripple (XRP) may be one of the most undervalued cryptocurrencies. Despite gaining much value after its partial victory against the SEC its price has dithered again. This analysis delves into XRP’s possible price moves. We will also discuss key indicators which suggest that XRP may breakout in the near future.
Ripple (XRP) Struggles below $0.55
Since the 17 August altcoin flash crash the price of XRP has remained below $0.55. This is because it continues to face bearish pressure. However, some key indicators show that XRP has maintained a generally stable market condition.
The XRP NVT ratio, a metric that measures a network’s transactional activity and compares it to the asset’s recent price performance, increased from 51.66 to 226 between 18 and 24 August, representing a 340% rise. The following graph shows this change.
Ripple Price Breakout - Santiment
An increase in the NVT ratio indicates growth in the network’s transactional activity in comparison to the downward change in the asset’s price. Also, it implies that external factors like bearish market speculation are driving the price of the asset down.
In other words, the rising NVT ratio shows that there is a lag in market demand which creates bearish pressure. Nonetheless, since XRP is in an oversold market position its value may rise in coming days or weeks.
Read also: XRP Climbs on the 4Th Spot Among Cryptocurrencies
Long-term Investors are HODling XRP
Due to the current depressed XRP price many Ripple investors are holding on to their coins, waiting for a future price rise. More significantly, there has been an increase in capital inflow since the beginning of September. Also, the Ripple speculators have been injecting fresh capital into the XRP Futures Markets.
As an example, Coinglass data shows an 8% increase in XRP open interest during the first week of September. Open Interest is the total value of derivative contracts for an asset such as XRP. An increase in the Open Interest (OI) is a bullish signal since more price speculators will be bringing new funds into the market. The following graph shows a rise in XRP Open Interests.
The Increase in XRP’s Open Interest - Coinglass
However, in the above situation the increase in XRP Open Interest coincided with a slump in the value of the Ripple coin. Such a divergence points to a possible XRP bullish reversal.
Many XRP investors who own between 1 million and 10 million Ripple coins have been increasing Ripple bullish pressure since the start of this month. Derivative traders have also acquired over 30 million XRP coins within the same period. According to on-chain data, the total whale balance increased from 3.73 billion XRP on 31 August to 3.77 billion on 4 September. The next diagram shows the increase in whale wallet balances.
Increase in Whale Wallet Balances - Santiment
As the picture shows, during the first week of September the whales added around $15 million worth of XRP coins at a price of around $0.50. If they replicate such a buying pressure its value may increase soon.
Since these XRP whales are part of some blockchain communities their activity may influence retail investors to mirror their trades, something that will increase its trading volume and bullish pressure. As a result, these XRP investors are likely to force its price to surge towards $0.55, a critical resistance level.
As a fact, the Ripple price retested the $0.55 point on 29 August before long term investors sold part of their holdings to take profit which caused a retracement towards $0.50.
The XRP Mean Coin Age also indicates the unwillingness of many long-term investors to sell their holdings. Although its Mean Coin Age dropped toward 34.33 after the recent crypto market crash, it later rose to 38.30, representing a 10% increase. If the XRP investors keep on holding more coins there will be a drop in the selling price which may result in XRP price breakout.
Ripple Poised for a 20% Price Surge
The truth is that the XRP market was depressed for more than one month and investors expect a 20% price surge in the coming days or weeks. Already, the Market Value to Realized Value (MVRV) confirms a possible bullish reversal whose target should be at least $0.60. The reason is that any price lower than $0.60 may lead to much loss for most Ripple investors who acquired the coin during last month.
As an example, most XRP investors are likely to make double digit losses if they sell at $0.52. In specific terms, they may incur around a 15.70% loss if they dispose of them at that price level. Strikingly, historical XRP patterns show that XRP investors may hold their coin to make at least 5% profit, rather than incurring losses.
In the current situation, if the investors decide to sell their holdings before a breakeven, XRP may face a strong resistance at $0.60. On the contrary, if the bears control the market for a longer period its price may drop to $0.45. In a worse off scenario, the XRP price may slip towards $0.42.
XRP Price Movement after Ripple Partial Victory against SEC
We have looked at XRP’s specific price movements within the first week of September. Further to this, we have come up with possible XRP price moves .
Historically, the Ripple price spiked a few days before SEC vs. Ripple ruling in July. The XRP value increased from $0.47, its price before the historic ruling, to $0.82 later in July. However, it has already lost much of that gain. Currently, people who want to invest in Ripple can buy XRP at $0.504.
Interestingly, there are many crypto exchanges like Gate.io where Ripple investors can acquire XRP. The good news is that investors can buy Ripple at Gate.io using various methods such as P2P trading. They can also convert other major cryptocurrencies like Bitcoin and ETH to XRP at minimal cost.
Read also: XRP Price Prediction & Forecast for 2023, 2025, 2030
Conclusion
Although the XRP current price has been falling within the last month there is a prospect of a rebound. Both the NVT and MVRV indicate that the Ripple price may rise within the next few days or weeks. Most investors who purchase XRP during the last 30 days are likely to incur a double digit loss if they sell at the current price.
FAQs about XRP
Is Ripple a good investment?
Based on its use cases Ripple is a good investment. First, it is one of the leading altcoins which many institutional investors support. For instance, many financial firms have partnered with Ripple since it caters for their needs.
What will XRP be worth in 2025?
The value of XRP in 2025 is likely to fluctuate between $0.212 and $0.804 with $0,591 being the average price. Nevertheless, such prediction may change depending on other factors such as institutional adoption of the coin and a change in the global economic conditions.
How high can Ripple go?
The price of Ripple can rise above $100 within 10 or so years. However, in 2031 it is likely to fluctuate between $0.146 and $1.20. Regulatory certainty on its classification will likely influence its price in the future.
Will XRP be as big as bitcoin?
It is likely that XRP may become as big as Bitcoin if there is an increase in its adoption. Since it drives a viable financial its price is likely to rise with time.
