XRP News Today: XRP Gains Bullish Momentum After MVRV Golden Cross and Sharp NVT Drop

XRP has shown emerging bullish momentum as key on-chain metrics and price action suggest a potential breakout. The recent MVRV golden cross, where the market value of XRP exceeded its realized value, is historically associated with substantial price increases, sometimes reaching 630% [1]. This technical event is often seen as a sign of undervaluation and growing investor confidence. Simultaneously, the network value-to-transactions (NVT) ratio dropped by 46.1% to 95.88 over the past 24 hours, indicating that XRP’s market value is aligning more closely with its transaction volume [2]. A lower NVT ratio typically reflects improved transaction efficiency and stronger on-chain activity, which can signal positive price trends.

In addition to these on-chain indicators, short squeezes are also contributing to upward pressure on XRP’s price. Recent liquidation data showed that shorts faced $3.03 million in losses, compared to just $290K for longs, forcing bearish traders to cover their positions [3]. This dynamic can lead to rapid price spikes, especially in a market already showing bullish tendencies. The cumulative effect of these factors is increased volatility and heightened anticipation for a price breakout.

XRP is currently trading near the 0.618 Fibonacci retracement level at $3.30, with immediate resistance identified at $3.46 and $3.66. A decisive move above these levels could lead to a price target of $4.23, according to technical analysis [4]. However, the asset has faced recent rejections near the $3.46 level, suggesting the presence of strong selling pressure. For XRP to continue its upward trajectory, sustained buying volume will be necessary to overcome this resistance.

The $3.40 to $3.48 zone has also emerged as a critical area for potential market movement, with dense liquidity clusters identified on Binance’s liquidation heatmap [5]. A breakout above this range could trigger significant reactions from both bulls and bears, making it a key battleground for the next phase of XRP’s price action.

Overall, the confluence of a golden cross, improved transaction efficiency, and favorable liquidation trends is strengthening the bullish outlook for XRP. However, the asset must clear key resistance levels to confirm the sustainability of its upward momentum and potentially replicate historical price rallies. Market participants are closely watching for signs of sustained buying pressure and on-chain validation of this bullish narrative.

Source: [1] XRP Shows Potential for Bullish Momentum Amid Golden Cross and Key Resistance Levels (https://en.coinotag.com/xrp-shows-potential-for-bullish-momentum-amid-golden-cross-and-key-resistance-levels/)