XRP Shows Positive Momentum as Investors Shift Toward
Accumulation
$XRP XRP is starting to show signs of a potential comeback, with investor accumulation increasing as seen through the rise in mean coin age metrics. Despite this positive momentum, the XRP futures market is still in a recovery phase after experiencing a significant 30% drop in open interest just last week.
XRP's current price target stands at $2.55, but if it dips below the $2.26 support level, it could trigger a unwind of long positions valued at over $80 million, which would put downward pressure on the price. However, there's hope for a resurgence as XRP has climbed 2% in early Asian trading on Thursday, fueled by a growing trend of accumulation. This shift in market sentiment comes alongside a potential bottom signal from the Market Value to Realized Value (MVRV) ratio, which hit a low of -17% last week. Historically, such low levels have been followed by a sharp price increase, with XRP previously surging by 60%.
The on-chain data further supports the narrative of accumulating investor interest, with many opting for a buy-the-dip strategy after the market decline on February 3. However, despite positive signs on the spot market, XRP's futures market remains cautious, reflected in the 30% drop in open interest from 2.05 billion XRP to 1.42 billion XRP. The futures market saw significant liquidations, amounting to $5.91 million in the last 24 hours.
At present, XRP is trading in a tight range between the $2.26 support and $2.55 resistance. The market is cautious, especially after the recent volatility. A decisive break above $2.55 could reignite bullish sentiment and draw back optimistic traders, potentially paving the way for further gains if it clears the $2.72 resistance.
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