XRP Price Analysis: Despite the Recent Rise, the Token Awaits Clear Direction From the Market

XRP's price action has remained in investors' favor for the last week, as both its daily and weekly charts were green. An analysis predicted that the token

XRP price has been in favor of investors for the last week and both daily and weekly charts closed in green. One analysis predicted that the token may be about to stage a major bull run.

But the reality may be different.

What is the situation with XRP?

CoinMarketCap data showed that XRP bulls dominated last week, with the token price increasing by more than 3%.

The situation in the last 24 hours was also optimistic and XRP witnessed a 2% price increase in the last day.

However, this latest price increase could not positively affect the token's social metrics. For example, the token's Social Volume dropped, indicating a decrease in the token's popularity. Its Weighted Sentiment has also fallen, meaning that the bearish sentiment around the token has increased.

Source: Santiment

The near future of XRP

Famous crypto analyst Amonyx shared a post a few days ago suggesting that XRP is expecting a major bull rally. The analysis appears to take Elliott Wave Theory into account.

Source: Amonyx

For beginners, Elliott Wave Theory in technical analysis describes price movements in the financial market.

The theory involves matching the tops and bottoms of a price chart and helps determine when the price of an asset may rise.

Going back to Amonyx's post, he highlighted a bull trend and XRP was testing a resistance. A breakout could start a bull rally.

A similar episode happened in the past and allowed XRP to start a bull run. However, this time this was not the case and the token witnessed a correction.

Therefore, AMBCrypto took a closer look at XRP's on-chain data and tried to determine where the token was going.

When we analyzed our Centiment data, we saw that network growth fell sharply last week. This showed that fewer new addresses were created to transfer the token.

Coinglass data also revealed that XRP's Long/Short Ratio has also fallen. When the metric drops, it means there are more short positions in the market than long positions, which can be considered a bearish trend.

However, the MVRV rate looked promising as it improved over the last few days.

Source: Santiment

Realistic or not, here is the XRP market cap in BTC terms

Next, we took a look at its daily chart to better understand the possible targets the token could reach in the coming days. According to our analysis, the Relative Strength Index (RSI) has declined.

If this causes a price drop, XRP may soon drop to $0.48. However, the Money Flow Index (MFI) moved northwards and showed a price increase towards $0.59.

Source: TradingView

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