XRP has been struggling to regain upward momentum after multiple failed recovery attempts over the past few weeks.
Market conditions have kept altcoins in the doldrums, but recent price movements may be setting the stage for a rebound. Indicators are currently showing early signs of stabilization, suggesting the possibility of renewed bullishness.
What does the indicator show about XRP?
The network value-to-transaction (NVT) ratio highlights an improving situation for XRP. This indicator has been steadily declining in recent days, indicating that the asset is in no danger of being overbought. A low NVT suggests healthy network activity relative to valuation, laying the foundation for sustainable price growth.
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This lack of excessive volatility will be beneficial for XRP’s next move. This indicates a balanced market environment where price movements are driven by organic demand rather than speculation. This stability is essential to building a strong foundation for a potential short-term breakout.
Short-term holders’ net unrealized gains and losses (STH-NUPL) ratio is currently in the surrender zone. Normally this would be a concern in a prolonged bear market, but historical data suggests this is not the case with XRP. Every time it fell into this zone in past cycles, there was a significant rally in the following weeks.
As long as STH-NUPL remains above the -0.2 threshold, the outlook remains positive. This position indicates that investor losses have not yet reached extreme levels and there is still room for recovery.
XRP price may rebound
XRP price is currently trading at $2.33, just below the $2.35 resistance zone. Breaking through this critical level is essential to confirming a short-term recovery. This is also likely to re-establish bullish sentiment among traders.
If XRP can secure a breakout above $2.35, it could rally towards $2.54 and even $2.80, reversing the recent decline. Such a move would strengthen market confidence and attract stronger capital inflows from the sidelines.
However, if the bullish situation does not materialize, XRP could slip through the $2.27 support level it has been holding for several weeks. Below this point, the price could fall to $2.13, invalidating the bullish argument and extending the correction phase.
