- XRP was up by more than 13% in the last seven days.
- Most on-chain metrics looked bullish on the token.
After a comfortable weekly bull rally, Ripple’s [XRP] price growth rate slowed down in the last 24 hours.
However, XRP might just be able to recover from that and start yet another rally in the coming week if one condition is met.
XRP needs to cross a critical level
According to CoinMarketCap, XRP’s value surged by more than 13% in the last seven days. However, the gaining spree ended as the token’s price had only moved marginally in the last 24 hours.
Interestingly, Cryptoes, a popular crypto analyst, recently posted a tweet highlighting a key resistance level for XRP.
The chart pointed out that the token has been hitting lower highs for quite some time, which is a typical bearish signal.
As per the tweet, XRP must cross the $0.6933 mark before the 17th of March if the token has to kickstart another bull rally.
But the rally may begin sooner than we expect. This was because, at press time, XRP had already broken above the resistance zone.
At the time of writing, the token was trading at $0.6982 with a market capitalization of over $38.2 billion, making it the sixth-largest crypto.
While the token’s value gained bullish momentum, its trading volume also increased. AMBCrypto reported earlier that XRP saw a sharp increase in trading volume, hitting levels not seen in months.
Is a bull rally inevitable?
To see whether this breakout would translate into a bully rally, AMBCrypto took a look at the token’s on-chain metrics.
Thanks to the price uptick, bullish sentiment around the token increased as its Weighted Sentiment moved up.
Investors increased their accumulation, which was evident from the massive spike in its Exchange Outflow. Another bullish metric was the MVRV ratio, as it also increased.
Additionally, the token’s Network Growth remained high, meaning that more addresses were created to transfer the token.
Source: Santiment
AMBCrypto then took a look at the token’s daily chart to check what indicators suggested. XRP’s Money Flow Index (MFI) registered a sharp uptick.
Realistic or not, here’s XRP market cap in BTC’s terms
Its MACD displayed a clear bullish advantage in the market, hinting at a further price rally in the coming days.
Nonetheless, the token’s price touched the upper limit of the Bollinger bands at press time, which suggested that selling pressure on XRP might increase.
Source: TradingView