XRP: Market Cooling and Breakout Potential
The MVRV Z-score of XRP has dropped to 2.57, indicating reduced unrealized profits and a lower likelihood of mass profit-taking.
Long liquidations at $6.83 million indicate a failure to break out as the price remains below the resistance level of $2.50.
Ripple's [XRP] recent momentum has weakened after several attempts to regain higher ground. Currently, this altcoin is trading at $2.35, down 3.26% in the last 24 hours.
XRP has recovered strongly from average levels but remains trapped in a descending wedge pattern on the weekly chart.
Price movement remains within a narrowing structure, while on-chain indicators show mixed signals regarding valuation, sentiment, and trading behavior.
Many indicators are beginning to diverge, reflecting uncertainty about XRP's short-term direction.
Valuation Analysis: Decreased Profit and Slow Utilization
The MVRV Z-score has decreased to 2.57, significantly lower than the overheated level recorded earlier this year. This suggests that unrealized profits have declined, reducing the likelihood of mass profit-taking in the near term.
With selling pressure easing, price volatility may cool off.
These neutral MVRV levels often coincide with accumulation or consolidation phases, especially when the price approaches significant structural thresholds.
Source: Santiment
However, the NVT ratio has surged to 838, indicating that market capitalization growth is far outpacing on-chain trading activity. This typically suggests that valuation is expanding faster than network usage, creating a gap between price and utility.
In the absence of a simultaneous increase in trading volume, this imbalance could weaken the fundamental support for further growth.
Leverage Adjusts As Short-Term Activity Slows
Liquidation data from May 17 shows $6.83 million in long liquidations compared to just $481K in short liquidations. This indicates that optimistic traders had overly extended their positions, only to face a swift market rejection.
This imbalance indicates multiple failed breakout attempts as buyers struggle to maintain upward momentum before being pushed back.
Source: CoinGlass
HODL Capital Waves 1d–7d have decreased to 0.96, signaling a decline in short-term token movement. This often indicates reduced speculation and a shift towards holding behavior.
Lower wave activity often precedes stabilization periods, where short-term changes give way to long-term holding.
XRP Accumulates for Potential Breakout or Collapse
XRP continues to trade within a descending wedge pattern with resistance near $2.50 and support around $2.12 and $1.61.
At this moment, the price is near the upper limit of the wedge but still lacks a convincing breakout.
The Stochastic RSI, at 28.38, has seen a slight uptick from the oversold region, indicating early signs of momentum recovery.
The price remains in a tightening structure that often leads to directional changes, depending on volume and external confirmation.
Source: TradingView
XRP's technical and on-chain structure reflects reduced selling pressure, valuation concerns, and weakness in upward momentum.
Although some indicators suggest reduced speculation and stability in holding, others indicate a gap between price and network activity.
Whether the current structure leads to a breakout or another contraction phase remains unclear, as no strong directional signals have emerged.
Source: https://tintucbitcoin.com/rui-ro-xrp-3-canh-bao-quan-trong-cho-nha-giao-dich/
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