Analyzing Essential XRP Signals Every Trader Needs to Focus On Right Now!
In the dynamic world of cryptocurrency, Ripple (XRP) is currently navigating a crucial support zone around $3, following a 9% weekly drop that saw the digital asset retreat towards $2.7. This short-term bearish pullback, however, appears to be a healthy market reset within an overall bullish trend.
According to a report by Glassnode, the current dip in XRP price does not signal an overvalued blowoff. Instead, it reflects a typical market correction. This assessment is backed by a double bottom (W-shaped) structure on the monthly chart, a classic bullish reversal pattern, which indicates a potential trend shift upwards once certain resistance levels are reclaimed.
Analysts suggest that for XRP to confirm a breakout from the current consolidation, it needs to close August above $3.3. Such a move would set the stage for significant upside in September, with forecasts ranging from $4–$8 by August or year-end, due to improved regulatory clarity around Ripple and positive technical momentum. Some ambitious projections even foresee much higher price targets over the longer term.
On-chain factors and recent favorable developments in the Ripple vs SEC case have strengthened investor confidence, supporting the narrative that XRP’s recent dip is more of a correction than a blowoff peak. The derivative action indicates traders are keeping their exposure in check and avoiding leverage overload, setting up a potential entry window.
At press time, the NVT ratio for XRP sits comfortably at 117, suggesting the digital asset is in a more controlled range. This is a stark contrast to the NVT ratio at $3.60, which surged to 167, the highest since last year's election rally. Despite a recent 7% drop from its $3.40 high, Realized Profits at $3.30 for XRP never cracked the $1 billion mark, and at $3.60, they triggered a brutal 23% sell-off in two weeks.
If this dip in XRP holds above key support and on-chain metrics stay steady, it could indicate buyers are stepping back in, making it a potential clean, lower-risk spot to load up before the next run. The key safety net in this scenario is $2.95, with Open Interest not exceeding $10 billion, stalling at around $8.5 billion.
In summary, while the recent price pullback is a notable short-term negative swing, it aligns with a typical healthy reset in a broader bullish cycle rather than a sign that XRP is in an overvalued blowoff phase. Recovery hinges on reclaiming and holding above key resistance levels such as $3.3 by the end of August to support a renewed upward surge.
- Ripple (XRP), currently trading around $3, is experiencing a healthy market reset, according to a report by Glassnode, despite a 9% weekly drop and a short-term bearish pullback.
- Analysts believe that if XRP can close August above $3.3, it could set the stage for significant upside in September, with forecasts suggesting prices ranging from $4–$8 by August or year-end.
- On-chain factors and recent favorable developments in the Ripple vs SEC case have boosted investor confidence, suggesting that XRP’s recent dip is more of a correction than a blowoff peak.
- In the dynamic crypto market, understanding and monitoring the on-chain data, like the NVT ratio, can help investors identify potential entry points, like the current controlled range of XRP, which could indicate a lower-risk spot to load up before the next run.
