XRP Price Surges 12% Amid Bullish On-Chain Indicators and Derivatives Market Sentiment

XRP, the native token of the XRPLedger, experienced a significant price surge of 12% on November 29, as it maintained a steady position above $1.7300. This upward trend is in line with the performance of other leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).

XRP On-Chain Indicators Signal Price Growth

According to on-chain metrics, XRP traders have shown increased activity between November 16 and 29. This surge in activity is reflected in the spikes in the active addresses metric, which represents the number of unique addresses that have made a transaction on the network. Furthermore, the network realized profit/loss metric indicates that XRP traders have been transacting profitably since November 4, with positive spikes above the neutral line signifying profit-taking.

Key on-chain indicators for XRP include:

  • Active addresses metric: shows increased activity among XRP traders
  • Network realized profit/loss metric: indicates profitable transactions among XRP traders
  • Ratio of daily on-chain transaction volume in profit to loss: 6.73, indicating dominant profitable transactions

XRP Eyes Retest of April 2021 Peak

Technical indicators suggest that XRP may be poised for an extended price rally, with a potential retest of the April 2021 peak of $1.9669, representing a 12.85% rise from the current level. A successful break past this level could erase the losses incurred by traders over the past three years.

Key technical indicators for XRP include:

  • Relative strength index (RSI): 88, indicating overvaluation
  • Moving average convergence divergence (MACD) indicator: signals further gains are likely
  • Green histogram bars above the neutral line: support a thesis of XRP price rally

XRP Derivatives Traders Turn Bullish

Coinglass data reveals that XRP derivatives traders on Binance and OKX are bullish on the altcoin, with a likelihood of a rally in the spot market as the long/short ratio crosses 1 on major exchanges. Additionally, the open interest in XRP futures has surpassed $2.41 billion, indicating a higher relevance of the token and its rising demand among market participants.

Strategic Considerations

XRP’s price trend is closely correlated with Bitcoin (BTC), with a three-month correlation of 0.82. As such, a significant market movement in Bitcoin could impact the XRP price. Additionally, the U.S. Securities and Exchange Commission’s lawsuit against Ripple and progress in regulatory clarity on crypto in the states are other key market movers for XRP.

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