Ripple’s XRP has been in a consolidation phase over the past week, with price fluctuations causing uncertainty in market direction. Currently, XRP is holding above the crucial $2.50 support level, a key point for future movements. Historically, a specific technical indicator has signaled significant price surges. Could it happen again?
This Buy Signal Has Preceded XRP Price Rallies Twice—A Third Time Incoming?
XRP’s price has historically surged whenever a particular market indicator flashes a strong buy signal. Data reveals that this trend has occurred twice before, leading to substantial gains. The MVRV ratio, a key metric analyzing market value versus realized value, has previously pinpointed strong buy zones resulting in remarkable rallies.
Between November 3 and December 3, 2024, XRP soared 49.1%, and another impressive rally of 68.94% occurred between December 31, 2024, and January 16, 2025. Now, market analysts note a similar signal has emerged once again, raising expectations for another potential surge.
The latest MVRV ratio trends, combined with network realized profit and loss data, indicate a possible bullish movement ahead. With history as a guide, traders are closely watching whether XRP will repeat this pattern.
Ripple Eyes Rebound as Buy Signal Emerges
Crypto analyst Ali highlights the emergence of the TD Sequential indicator, a widely-used tool for predicting trend reversals. Typically, this signal appears after a prolonged downtrend, hinting at an upcoming shift in sentiment. If the past is any indication, XRP could be on the brink of another upswing.
Optimism surrounding Grayscale’s spot XRP ETF filing has further fueled speculation. This move could signal potential regulatory clarity and institutional adoption, strengthening Ripple’s market position.
XRP Price Analysis & Key Levels to Watch
Currently, XRP trades at $2.58, showing a 4% decline in the past day. However, maintaining support at $2.50 is crucial for future price action.
- Support levels: $2.50 (critical), $2.00 (next key level)
- Resistance levels: $3.00 (first hurdle), $3.50 (major breakout zone)
- RSI: 40.31, indicating weak momentum
A push beyond $3.00 could spark bullish continuation, while a drop below $2.50 might lead to a retest of $2.00.
Also Read: SEC’s Crypto Enforcement Faces Uncertainty as Legal Battles with Coinbase, Binance, and Ripple Pause
The broader crypto market cap sits at $3.15T, down 1.45% as Bitcoin trades just under $96,000. If historical trends hold, XRP could be gearing up for another breakout, making this a key moment for traders.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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