XRP is gaining attention again as its social dominance rises to 2.92%, and sentiment turns slightly positive at +0.166 after a sluggish June. On Binance, over 76% of traders hold long positions, reflecting growing optimism. However, on-chain metrics remain weak, and price action lingers in a descending wedge. The next move could determine whether bullish momentum holds or fizzles out.
XRP Holds at $2.14 — Key Resistance Ahead
XRP rebounded from the $2.00–$2.10 support zone, stabilizing near $2.14**. Despite the bounce, the token remains trapped in a **descending wedge**, with repeated rejections at higher levels. A decisive break above **$2.35 with strong volume could propel XRP toward $2.60**. Conversely, failure to overcome resistance may lead to a retest of **$2.00 or even $1.80.
Critical Factors for a Breakout
- Volume: Sustained buying pressure is essential.
- On-chain activity: Address growth must support price momentum.
- Market sentiment: Positive trader positioning needs validation from price action.
Social Hype vs. On-Chain Reality
While social metrics improve, daily active addresses (17.4K) and transaction volume remain lackluster. This disconnect suggests hype may outpace genuine demand. Without stronger network activity, any price rally risks becoming speculative noise.
Red Flags to Watch
- Flat transaction volume despite rising sentiment.
- No surge in new or active addresses.
- Potential for a "pump and dump" if fundamentals don’t catch up.
NVT Ratio Drops — Is XRP Undervalued?
XRP’s NVT ratio (measuring market cap vs. transaction volume) fell 18.43% to 237.16, signaling potential undervaluation. However, without corroborating metrics like rising engagement or volume, this shift may lack substance.
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Key Takeaways
- NVT declines alone don’t confirm undervaluation.
- Look for supporting metrics like volume spikes or address growth.
Long-Term Holders Face a Dilemma
The MVRV Long/Short Difference (+20.99%) shows long-term holders remain profitable. Yet, prolonged price stagnation near resistance could trigger profit-taking, adding sell pressure.
Risks for Bulls
- Profit-taking may accelerate if $2.35 holds as resistance.
- Weak breakout attempts could demoralize buyers.
FAQ: XRP Price and Sentiment Analysis
Q: What’s the key resistance level for XRP?
A: $2.35 is the critical level to watch. A breakout here could signal a bullish trend reversal.
Q: Why is on-chain activity important for XRP’s price?
A: Without growth in active addresses or transactions, price rallies may lack sustainability.
Q: How does social sentiment impact XRP?
A: Positive sentiment can drive short-term hype, but lasting gains require fundamental support.
Verdict: Breakout or Bust?
XRP’s community optimism contrasts with muted on-chain data. For a sustained rally, price must break $2.35 with volume backing. Otherwise, the token risks another rejection or sideways drift.
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Final Thoughts
- Bullish scenario: Clear $2.35, attract volume, and target $2.60+.
- Bearish scenario: Rejection at resistance leads to a drop toward $2.00.
- Watch for: Volume spikes and address growth to confirm momentum.