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$XRP price continues to struggle under a prolonged downtrend that has weighed on its recovery. The altcoin recently suffered a sharp decline alongside the broader market, falling as low as $2.70 before a slight recovery.
While this pullback exposed weaknesses, it also highlighted the possibility of a rebound.
$XRP Investors Need To Wait
The NVT Signal for $XRP is showing a notable decline, sitting at a 5-month low, suggesting the altcoin could be undervalued compared to its transaction activity. A lower NVT ratio often reflects accumulation phases, where investors quietly increase exposure before a potential breakout. This makes the current levels worth monitoring for bullish momentum.
Historically, drops in $XRP’s NVT have preceded uptrends, as higher transaction activity relative to market value tends to attract renewed confidence. If investors continue accumulating at these lower levels, $XRP could build the base needed to break out of its recent slump.
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$XRP NVT Signal">
Short-term holders’ net unrealized profit and loss (STH NUPL) is another indicator pointing toward possible accumulation. $XRP’s STH NUPL currently sits near the capitulation zone, where investor profitability dips low enough to trigger renewed buying. Historically, such dips have aligned with rebounds.
However, $XRP is not fully in capitulation territory yet. This means that more downside may still occur before investors commit heavily to accumulation. A deeper drop would likely cause near-term losses but could also set the stage for a stronger reversal later.
$XRP STH NUPL">
$XRP Price Is Looking At Further Decline
At the time of writing, $XRP price trades at $2.85, recovering slightly after a 9% crash drove the price to $2.70 during the intra-day low, over the last 24 hours. Despite the bounce, market signals suggest caution in the short term.
If the indicators play out, $XRP is unlikely to reclaim $2.85 as solid support immediately. Instead, the price could fall back to $2.75, which may serve as the real foundation for a reversal. Holding this support will be crucial for buyers to reassert control.
$XRP Price Analysis. ">
Should broader market conditions improve, $XRP could push higher, reclaiming $2.85 as support and testing $2.94 in the near term. However, the longer-term bearish pressure remains, meaning investors may still face volatility before a sustained rally emerges.
The post $XRP Price Crash Sets Stage for Rebound—But Here’s Why Caution is Advised appeared first on BeInCrypto.