According to a recent analysis, XRP, the digital asset driving the Ripple network, is displaying signs of a potential breakout. After consolidating within a specific range, the altcoin is poised for a significant upward move once it breaks above the pattern. Corroborating this bullish outlook are several technical indicators highlighted by market experts.
In the chart shared by an analyst, “JD”, the MACD [Moving Average Convergence Divergence], a key tool to identify potential changes in the token’s price trend, is heading toward a bullish crossover. This indicates a possible shift in momentum.
Additionally, the RSI [Relative Strength Index] which measures speed and change of price movements is hovering above the oversold zone, suggesting a potential buying opportunity.
The expert behind the analysis focused on recognizing and acting upon technical signals rather than solely relying on external factors like legal developments [SEC vs Ripple lawsuit] or market sentiment. He likened investors who consistently fall prey to market cycles to “dumb money”, emphasizing that avoiding such behavior is crucial to not missing out on profitable opportunities.
Amidst the price fluctuations and persistent bearish sentiment, traders are making a beeline into July’s top-performing networks, indicating a significant rise in interest and activity.
XRP Network Explodes With User Activity
Recent on-chain data highlighted both new addresses created and total addresses interacting on the XRP network are at their highest levels since March. The data, spanning from mid-April to mid-July showed 36,111 unique addresses interacted daily and a new address of 1,138, created in the network.
However, in a single day, 1,721 new XRP wallets were created, the highest since March 30th. Also, 47,363 individual addresses interacted on the network, a record since March 9th.
Overall, experts are bullish on XRP, highlighting the importance of technical analysis over speculation. That being said, the prospects for an XRP breakout after a period of downtrend are exciting, it’s therefore essential to approach with caution. The cryptocurrency market is highly volatile, and past performance is not indicative of future results. Traders and investors should conduct thorough research and adopt risk management strategies before making any investment decisions.