The decline in XRP that lifted the price of the old from its all-time high of $ 3.31 to below $ 1, rocked investors and traders. That rally was a sigh of relief for these investors, however, as the price of the Alt rose nearly 40% in a week. Oddly enough, Bitcoin, Ethereum, and even BNB had seen smaller gains since compared to XRP which was one of the top weekly winners at the time of writing (second only to Cardano).
While XRP traders are getting a lot of cheers that the Alt has finally hit the $ 1 mark for the first time in 10 weeks, it will be interesting to see how this price rally plays out for the Alt who has been in for the past few years cycle has fallen by more than 80%.
Finally, high market value for XRP
When XRP swung close to $ 0.5 a month ago and made headlines, but not about its gains or metric highs but about the SEC vs. Ripple case, the thought that the Alt could recapture the $ 1 level would be one distant dream. Now that XRP is testing that crucial $ 1 mark, questions about how to keep the rally going are back on the table.
Well, for one, XRP’s price rebound was aided by a solid surge in MVRV (60 days) which, according to Santiment, was showing an anomaly (high levels) at the time of writing. This meant that this was actually a bull run and that the long term owners are finally getting some benefits from it. The MVRV for the Alt was at the time of writing the May 15 levels, which corresponded to the peak price of XRP at the time.
XRP’s return to the overbought zone for the first time since its April ATH award was nothing short of a miracle for owners of the old. On the bottom, With XRP still 69.98% below its ATH, the RSI in the overbought zone could mean the price could fall after selling pressures set in. But as long as other metrics hold up, XRP could hold on to its profits. In this sense, a look at the development page for XRP has given us a lot of reassurance.
A Santiment tweet highlighted how development activity rates for the top cryptos showed continued dominance. Interestingly, however, in an unprecedented trend, the XRP network was approaching a higher daily Github development rate than Bitcoin, “which has rarely happened”.
Though XRP’s social sentiment didn’t highlight major uptrends for the Alt, its active addresses hit the May 15th levels on August 11th. Additionally, development activity for XRP hit new all-time highs at the time of writing. Even daily active addresses held up pretty well with high trading volumes and rising prices.
While everything looked fine to sixth-placed alto, it’s best to keep an eye out for it Warning signals such as a decline in active addresses or low trade candles when prices are high. Especially when you consider XRP’s nearly 10% decline on August 12, it’s important to keep an eye on key levels like the $ 0.8 mark.