 ▲ XRP |
XRP has recently halted its downward trend and entered a bottom range based on key on-chain indicators, triggering a sharp rise in investor expectations for a long-term price recovery.
According to cryptocurrency media outlet FXStreet on February 13 (local time), XRP is attempting a rebound while maintaining stability above its intraday low of $1.35 amid mixed market conditions on Friday. Although XRP failed to defend the key support level of $1.40 the previous day—reflecting weakened retail investor sentiment—buying interest is now gathering in an effort to flip the $1.40 level back from resistance into support. Experts suggest that a decisive break above $1.40 could ease downward pressure and mark the beginning of a full-scale recovery phase.
The Market Value to Realized Value (MVRV) Z-Score, a core on-chain metric used to assess an asset’s valuation, is currently at -0.13 and has remained in negative territory for nearly two weeks. Historically, entry into the negative zone has served as a strong signal that the asset is undervalued relative to its intrinsic value. In July 2024, a similar pattern preceded a surge in price from $0.45 to $2.91. As a result, analysts are increasingly weighing the possibility that the current price range represents a technical bottom.
Despite positive technical indicators, the continued increase in XRP holdings on exchanges is cited as a factor that could hinder a short-term recovery. Inflows to exchanges may translate into potential selling pressure, limiting the extent of price gains. Investors are closely monitoring whether XRP can break above $1.40, as well as the strength of support at the next key level of $1.25, while cautiously assessing market conditions.
XRP previously fell to an annual low of $1.12 on February 6 before briefly rebounding to $1.54, only to undergo a correction due to overhead resistance. Although the downward trend has persisted since the recent peak of $3.66 recorded last July, the prevailing assessment is that XRP has moved past oversold conditions and is in the process of establishing a bottom. Future shifts in overall cryptocurrency market liquidity and the direction of institutional capital are expected to serve as the final inflection point determining the long-term trend.
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