XRP price rally to $1 likely if these conditions are met

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  • XRP price increased nearly 2% on Friday, inching closer to its $0.60 target. 
  • XRP holders await the February 20 deadline for updates on the SEC v. Ripple lawsuit. 
  • XRPLedger’s native token could see the $1 target back in play if on-chain metrics catalyze gains in XRP. 

XRPLedger’s native token XRP price climbed to $0.5791 on Friday, inching closer to the $0.60 target. XRP price could eye a return to the $1 level with bullish on-chain metrics and likely positive developments in the SEC lawsuit. 

Also read: Ripple unveils plans for crypto custody while XRP price trades sideways

Daily Digest Market Movers: Ripple on-chain metrics support XRP price gains

  • XRP Volume has climbed to 1.81 billion on Friday, up from 578.41 million on February 10. The rise in volume is typically followed by an increase in the altcoin’s price, as seen in previous instances on Santiment. This is a bullish sign for XRP. 

XRP

XRP Volume. Source: Santiment 

  • Network Realized Profit/ Loss metric, used to determine the profit/loss realized by traders on a given day, reveals a series of negative spikes, meaning XRP holders realized losses on several occasions between January 1, 2024 and February 15. This is consistent with capitulation and is likely to be followed by a massive price surge. 
  • The following Santiment chart shows that XRP price nearly doubled between September and November 2023 after consistent negative spikes in the Network Realized Profit/Loss metric. 
  • If the pattern repeats itself, it could make the $1 target relevant again and XRP price could witness a massive surge in its price in the following weeks and months. 

XRP

Network Realized Profit/Loss. Source: Santiment 

  • Developments in the SEC v. Ripple lawsuit typically influence XRP price. The next key deadline for the US financial regulator’s legal battle against Ripple is February 20. This will mark the end of the remedies-related discovery phase. 

Technical Analysis: XRP price could revisit its 2024 peak and rally higher

XRP price is currently in an uptrend and the altcoin has climbed to a $0.5791 high on Friday. The asset is inching closer to resistance at $0.60. The 2024 peak of $0.6405 is back in play as a target for XRP price. 

The Awesome Oscillator (AO) shows green bars, confirming that XRP price uptrend is in place. It has been consistently green and above zero for nearly the whole month of February 2024. 

The Moving Average Convergence/ Divergence (MACD) indicator shows one green bar above the zero level, suggesting positive momentum is coming back to XRP. This supports the altcoin’s rally towards $0.60. 

The key resistances for XRP are the $0.60 and the $0.64 level. Once XRP price flips these resistances to support, the next key target is the November 2023 peak of $0.75. 

Consistent gains in XRP price could bring the 2023 peak of $0.9380 and the $1 psychologically important level, back in the narrative for the altcoin. 

XRP

XRP/USDT 1-day chart 

A daily candlestick close below Wednesday’s low of $0.5203 could suggest a sweep of support at $0.50 before XRP price resumes its climb. 

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.


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