San Francisco, California – Experts are optimistic about the future of XRP, citing positive network value metrics. Despite the possibility of a short-term drop due to magnetic zones below the market price, Ripple (XRP) has been trading above the mid-range resistance zone with potential for a rally towards $0.7, the range high. The short-term sentiment remains bullish, indicating a strong likelihood of upward movement.
However, weak demand from spot markets has limited XRP’s growth, with local resistance at $0.63 proving challenging since mid-July. While there are signs of accumulation, the question remains whether this will be sufficient to drive a rally to the range highs.
On-chain metrics also point towards bullishness, with low development activity suggesting a lack of encouragement for long-term investors. Daily active addresses peaked in mid-July after the SEC case ruling but have since tapered off, while network growth has been stable but slightly increasing since June.
Following a sharp price drop in early August, mean coin age began to trend higher, indicating accumulation of the token. However, dormant circulation remains low, suggesting minimal token movements that could lead to high selling pressure. The short-term MVRV has been positive, showing minor profits for holders but still far from the highs seen in mid-July.
Liquidity currently favors a potential price drop for XRP, as data from the liquidation heatmap reveals bearish levels clustered around the $0.58-$0.59 zone. Despite this, a sweep of these levels could lead to a bullish rebound towards $0.7, the range highs. Investors are advised to monitor these levels closely for potential market movements.
In other developments, Stuart Alderoty, Chief Legal Officer for Ripple, commented on the Kraken case, stating that the confirmation of no crypto asset securities is bad news for the SEC. This poses a challenge to the SEC’s regulation-by-enforcement policy, creating uncertainty in the regulatory landscape for cryptocurrencies.