 ▲ XRP (XRP) / AI-generated image |
XRP has entered a clearly undervalued zone based on the Market Value to Realized Value (MVRV) metric, but it remains weighed down by multiple adverse factors, failing to seize a rebound opportunity and continuing to face downward pressure.
According to cryptocurrency media outlet BeInCrypto on March 4 (local time), XRP is currently moving sideways between the upper resistance level of $1.47 and the lower support level of $1.34, forming a distinct downward curve. As selling pressure intensifies, upward momentum has been offset, and investor anxiety has reached extreme levels. BeInCrypto warned that the current price stagnation may signal not just a simple correction but the early stages of a long-term downtrend.
On-chain data analysis indicates that the MVRV ratio suggests the asset is positioned at a historical low. Typically, when this indicator declines, it is seen as a buying opportunity at the bottom and is followed by a strong rebound. However, the current market remains cold and unresponsive. Experts note that macroeconomic uncertainty and geopolitical risks have fully suppressed investor sentiment, creating an unusual situation in which positive indicators are not reflected in the price at all.
Rising tensions in the Middle East have become a decisive factor draining liquidity from the broader digital asset market. As investors sharply reduce their exposure to risk assets such as altcoins and focus on securing cash, XRP continues to slide without meaningful buying interest. In particular, the steady increase in inflows to major exchanges suggests that short-term supply-demand imbalances may further intensify.
From a technical perspective, if XRP fails to defend the $1.34 support level, there is a significant risk of a rapid سقوط to around $1.21. Conversely, if market sentiment improves dramatically and the price breaks above the $1.47 resistance level with strong trading volume, XRP could reclaim the $1.58 mark and lay the groundwork for a trend reversal. For now, however, downward pressure outweighs upward momentum, increasing the likelihood of panic selling should support levels collapse.
The digital asset industry believes that XRP’s future direction will depend on changes in the U.S. regulatory environment and a recovery in institutional capital inflows. Prolonged stagnation in an undervalued zone could instead provide momentum for sellers to intensify their attacks, requiring heightened caution from investors. The market is expected to maintain high volatility for the time being while testing the strength of key support levels, and a conservative approach is advised until clear signs of a rebound emerge.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.*