XRP has finally snapped a long-standing downtrend, gaining over 4% on July 9 and breaking out of a falling wedge, a bullish reversal pattern.
After weeks of sluggish action, this breakout now brings key resistance levels into focus. But are on-chain metrics confirming the move?
XRP Holder Count Is on the Rise, Again
Despite price fluctuations, XRP’s total holder count has been on a parabolic rise since the start of the year. The number has now climbed to around 6.64 million, suggesting growing long-term interest in the asset.
This sustained growth reflects increasing wallet creation and user retention, pointing to rising investor confidence over time. While not always linked to immediate price movements, rising holder count often underpins broader market strength.
Holder count tracks the total number of unique wallet addresses holding a non-zero amount of XRP. A rising holder count suggests that more users are accumulating or holding XRP over time, often seen as a sign of network strength and investor confidence.
XRP Looks Undervalued Based on MVRV Z-Score
One of the most telling signals in XRP’s on-chain data right now is the MVRV Z-Score (Market Value to Realized Value Z-Score): a metric used to assess whether an asset is undervalued or overvalued relative to its historical fair value.
As of now, XRP’s MVRV Z-Score is hovering near 2.13, which is still on the lower end of the historical scale. While it’s not in the deep undervaluation zone (usually below 1), it remains below the overheated levels above 5–6 that typically precede local tops.
This means XRP is not overvalued, and the current price action is likely backed by a healthy demand-supply dynamic. This positioning supports the case for continued upward movement, especially since the score has been gradually rising, reflecting increasing market confidence.
MVRV Z-Score compares XRP’s current market value to the average price at which all coins were last moved (realized value). A low score indicates that investors are generally holding at a loss or near break-even, suggesting potential upside.
A rising Z-Score (not too much though) signals improving sentiment and growing profitability, both of which can fuel a bullish trend.
Wedge Breakout Confirmed, But XRP Price Faces Resistance
XRP price has broken above the upper trendline of its descending wedge at $2.29 and is currently trading near $2.39.
However, immediate resistance lies at $2.48. If bulls manage to push through, the next potential targets sit at $2.60, $2.83, and eventually $3.13.
Still, traders must stay cautious. A drop below $2.26; the former wedge resistance turned support could invalidate the breakout. Any fall below $2.08 would confirm a deeper retracement, putting XRP back into consolidation.
To truly reclaim momentum, XRP price must hold above $2.26 and flip $2.48 into support. Until then, the rally remains on shaky ground.
The post XRP Breaks Out From a Multi-Month Wedge – What’s Next? appeared first on BeInCrypto.
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Ananda Banerjee
https://beincrypto.com/xrp-price-breaks-multi-month-wedge-whats-next/
2025-07-09 20:00:00
