Key Takeaways
XRP’s MVRV golden cross, improved NVT Ratio, and short squeeze data support a bullish case. A break above $3.46 could mirror past rallies, but sustained buying remains essential for continuation.
Ripple’s [XRP] MVRV ratio has once again flashed a golden cross, a rare technical event that historically preceded rallies of 630% and 54%.
This metric tracks the relationship between market value and realized value, helping gauge undervaluation or overvaluation.
At press time, XRP traded at $3.32, holding above key supports. Naturally, the reappearance of this rare signal has bolstered bullish sentiment, especially with technical momentum and on-chain metrics showing improvement.
Will Fibonacci resistance hold back XRP’s bullish momentum?
The daily chart placed XRP near the 0.618 Fibonacci retracement at $3.30, with immediate resistance at $3.46 and $3.66, at the time of writing.
A clean breakout above these levels could pave the way toward $4.23. On top of that, the MACD line stayed above the signal line, reinforcing bullish momentum.
However, recent rejections near the 0.786 level at $3.46 suggest supply pressure remains. Sustained buying volume will be key to unlocking the next leg higher.
Source: TradingView
Could THIS decline fuel stronger network efficiency?
XRP’s NVT Ratio has plunged by 46.1% in the past 24 hours, dropping to 95.88, at press time. This decline suggests the asset’s market value is now more in line with the transaction volume on the network.
Historically, lower NVT values indicate higher transaction efficiency and stronger on-chain activity, which can often precede bullish price action.
This shift may enhance investor confidence, particularly when combined with technical setups pointing to potential upside.
However, market participants will still look for confirmation through sustained transaction growth in the coming sessions.
Are short squeezes giving bulls the upper hand?
Liquidation data showed shorts faced $3.03 million in losses against just $290K for longs, forcing bearish traders to buy back positions.
Such short squeezes can trigger rapid price spikes when the bias is already bullish.
However, volatility risk remains — another round of squeezes could drive sharp moves in either direction.
Will the $3.40 zone act as the next breakout trigger?
Binance Liquidation Heatmap data highlighted dense liquidity clusters between $3.40 and $3.48, suggesting a breakout above this range could trigger significant market reactions.
These levels coincide with key short-term resistances, making them important battlegrounds for bulls and bears.
If bulls push past these liquidity walls, price acceleration could be sharp, given the reduced selling pressure above them.
Conversely, failure to break through may lead to a short-term pullback, consolidating gains before the next attempt.
Can XRP’s golden cross replicate past rallies?
With bullish technical indicators, improved on-chain efficiency, and favorable liquidation trends, XRP is showing strong potential for continued upward movement.
The recent reappearance of the MVRV golden cross further strengthens the bullish outlook.
However, to maintain this momentum, XRP must decisively break above the $3.46 resistance level.
If this barrier is cleared with substantial buying pressure, historical patterns suggest the token could be on track for another major rally in the coming weeks.
