Altcoins News
By MikeT
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XRP continues to struggle beneath the $2.50 resistance mark, trading at $2.35 after a 3.26% daily drop.
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1. Falling Profitability and Network Usage Create a Valuation Gap
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On-chain data highlights that XRP’s MVRV Z-score, a key measure of investor profitability, has declined to 2.57.
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However, this cooling sentiment comes with a downside. When profitability drops without a corresponding uptick in network activity, it often signals a stall in momentum.
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2. Leverage Shakeout Signals Failed Bullish Attempts
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XRP's futures market shows signs of a recent shakeout among over-leveraged bulls. On May 17, $6.83 million in long positions were liquidated compared to just $481,000 in shorts.
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Such liquidations often precede a reset in momentum, as market participants reassess risk. Further compounding this trend is a drop in the 1d–7d Realized Cap HODL Wave, now at 0.
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3. XRP’s Wedge Pattern Tightens—Breakout or Breakdown Looms
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Technically, XRP is nearing the apex of a descending wedge on the weekly chart—a pattern often associated with a breakout. The current resistance lies around $2.
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The Stochastic RSI—a momentum indicator—is currently at 28.38, recovering from oversold territory.
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At present, XRP remains coiled within a narrowing range. This phase of consolidation typically precedes a sharp directional move—but whether that move is upward or downward…
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Conclusion: Watch the Wedge, Not Just the Price
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XRP is in a critical holding pattern, with bearish signals in valuation and usage, yet signs of stabilization in trader behavior.
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Traders should closely monitor the price’s interaction with the $2.50 resistance and $2.12 support, as well as shifts in trading volume and network activity.
The Currency Analytics
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