Technical analysis indicates XRP possesses potential for significant bullish momentum, contingent on overcoming major resistance levels. Key on-chain and market metrics point towards possible upward movement, though recent price action highlights near-term challenges.
The emergence of XRP’s Market Value to Realized Value (MVRV) golden cross is a historically significant signal. Past occurrences of this formation have often preceded substantial price rallies, with potential gains reaching as high as 630%, offering a strong positive precedent for investors.
Further supporting the bullish case is a marked improvement in XRP’s Network Value to Transaction (NVT) ratio. A decline of 46.1% to a current reading of 95.88 suggests the network is processing value more efficiently and experiencing stronger underlying on-chain activity, a condition that has frequently preceded increases in price.
Adding short-term upward pressure is evidence of ongoing short squeezes. Market data reveals that short liquidations have significantly outweighed long liquidations recently, with $3.03 million worth of shorts being liquidated compared to only $290,000 in long positions, forcing buyers into the market.
Despite these positive signs, XRP faces critical technical resistance. Key hurdles are identified at the $3.46 and $3.66 price points. Analysis of liquidity clusters indicates dense concentration between $3.40 and $3.48, meaning a decisive breakout above this zone could significantly accelerate upward momentum, potentially targeting the $4.23 level. However, recent rejections near the $3.46 level demonstrate the significant selling pressure currently present.