By Franklin Smith
- XRP hints at a $1 retest after the remittance token overpowered a bull flag setup.
- On-chain metrics are still neutral, suggesting a potential minor drop before the optimistic picture continues.
- Breaching the support barrier at $0.687 will cancel Ripple’s bullish thesis.
Ripple price experienced a colossal breakout from a bullish setup, but consolidation saw the alt remaining range-bound. Though technical exhibits a bullish outlook, on-chain metrics suggest a minor obstacle ahead.
XRP Ready to Extend its Upsurge
XRP price movements within the past month formed a bullish continuation pattern. The altcoin printed a bull flag following a 55% upsurge from 3 February and 8 February. The flag resulted from the consolidation that followed inside converging trend-lines.
Ripple breached the flag’s topside trend-line around $0.779 on 11 March, violating a pattern. The technical setup predicts a 31% upsurge toward $1, revealed by adding the bullish flag height to the breakout level.
So far, the alt’s price appears to hold well but should overcome the hurdles at $0.856 and $0.917 to hit the optimist target of $1.
Though breaking out from a bull flag setup means a bullish case and a considerable development, XRP’s funding rate appears on a massive spike. Remember, the funding rate determines traders’ actions. A positive figure shows most enthusiasts await price hikes from the alt.
Nevertheless, extreme readings often indicate bottoms or tops. Ripple’s funding rate has climbed to $0.123% from 0.015%. The 720% surge highlights a potential temporary trend reversal.
Furthermore, the daily active address stat, used to gauge investors’ interest in Ripple at the current zone, plunged to 49,000 on 16 March from 117,000 on 2 March. The 58% drop shows reduced capital inflows as these investors appear uninterested in Ripple’s prospects.
Therefore, market players should act with caution, executing long positions after the funding rate attains a neutral reading. Meanwhile, XRP producing a decisive close under the nearest support area around $0.687 will annul the bullish thesis.
For now, Ripple rides bullish waves at the momentum, changing hands around $0.7891. Also, the broad market reflects bullish actions, hovering around $1.82 trillion, following overnight gains. Maintaining the upward narrative will back XRP towards its target highs.