Key Highlights
- 27% Price Rally: XRP surged nearly 30% post-settlement, peaking at $2.40.
- Reduced Fine: Ripple's penalty dropped from $2 billion to $50 million.
- On-Chain Metrics: MVRV ratio of 2.22 suggests XRP remains undervalued, with a potential target of $3.
- Price Targets: Bullish momentum could push XRP to $3.40, while failure to sustain gains may drop it below $2.28.
Settlement Sparks XRP Rally
XRP’s 30-day rally accelerated after Ripple and the SEC resolved their legal dispute. The altcoin jumped from $2.12 to $2.40 following news of the $50 million settlement, marked by a bullish engulfing candle on the charts.
Technical Breakdown:
- 4-Hour Chart: Seven consecutive green candlesticks confirmed breakout from a descending channel.
- Bull Flag Pattern: Indicates potential continuation of upward momentum.
- Chaikin Money Flow (CMF): At 0.21, signaling strong buying pressure.
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On-Chain Metrics Support Growth
Undervalued Status:
- Realized Price: $1.05 (current price: ~$2.40), suggesting room for growth.
- MVRV Ratio: 2.22 (below overvaluation range of 2.59–4.26), implying further upside.
"XRP’s MVRV ratio historically peaks between 2.59 and 4.26. Current levels indicate the rally isn’t exhausted." — Glassnode Data
Price Projections: Bullish vs. Bearish Scenarios
Bullish Outlook:
- Immediate Resistance: $2.72 (breakout could target $3.40).
- MACD & RSI: Positive momentum with RSI at 62.03.
Bearish Risks:
- Failure to hold $2.28 may trigger a drop to $1.60 (0.618 Fibonacci level).
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FAQs
1. Why did XRP price surge after the settlement?
The $50 million settlement removed regulatory uncertainty, boosting investor confidence and buying pressure.
2. Is XRP overvalued now?
No. The MVRV ratio (2.22) remains below historical overvaluation thresholds, suggesting further upside.
3. What’s the next key resistance level for XRP?
$2.72, followed by $3.40 if bullish momentum continues.
4. Could XRP drop below $2?
Yes, if profit-taking occurs or broader market sentiment weakens, support at $1.60 may be tested.
Conclusion
XRP’s rally reflects renewed market optimism post-settlement. While technical and on-chain metrics support a push toward $3, traders should monitor key resistance levels and broader market trends.
Disclaimer: This content is for informational purposes only and not financial advice. Cryptocurrency investments involve risks; conduct your own research before trading.