XRP finally snapped its long-standing decline, earning over 4% on July 9th, escaping the falling wedge, a reversal pattern.
After several weeks of slow action, this breakout leads to a critical level of resistance to focus. But does on-chain metric check the movement?
The number of XRP holders is increasing again
Despite price fluctuations, the total number of XRP holders has been on a parabolic rise since the beginning of the year. The number has now risen to around 6.64 million, suggesting a growing long-term interest in assets.
This sustained growth reflects an increase in wallet creation and user retention, indicating an increase in investor confidence over time. Though it is not always linked to immediate price movements, rising holder numbers often underpin the strength of the wider market.
The Holder Count tracks the total number of unique wallet addresses that hold non-zero amounts of XRP. The rise in the number of holders suggests that more users are accumulating or holding XRP over time, and is often seen as a sign of network strength and investor trust.
XRP appears to be underrated based on MVRV Z score
Currently, one of the most important signals in XRP on-chain data is the MVRV Z-score (market value of realized value Z-score). A metric used to assess whether an asset is undervalued or overvalued.
Currently, the XRP’s MVRV Z-score is hovering near 2.13, but this is still at the bottom edge of the historic scale. It is not in the deep underestimation zone (usually below 1), but is usually below the overheating level above 5-6, which precedes the local top.
This means that XRP is not overvalued, and current price actions may be dynamically supported by healthy demand supplies. This positioning supports cases of continuous upward movement, particularly with scores increasingly increasing, reflecting increased market confidence.
The MVRV Z-score compares the current market value of XRP with the average price (realized value) that all coins moved last. A low score indicates that investors generally hold on losses or nearby intrusions, suggesting potential benefits.
An rising Z-score (not too many) indicates that it improves emotions and increases profitability.
Wedge breakout confirmed, but XRP price faces resistance
The XRP price surpasses the downward wedge’s top trendline at $2.29 and is currently trading nearly $2.39.
However, the immediate resistance is $2.48. If the Bulls manage to get pushed, their next potential targets are $2.60, $2.83, and ultimately $3.13.
Still, traders must remain cautious. A drop below $2.26. Previous wedge resistances may turn the support and disable breakout. Below $2.08, a deeper retracement is confirmed and XRP is integrated.
To truly regain momentum, XRP prices need to be supported by cutting over $2.48, over $2.26. Until then, the assembly remains on unstable ground.
Post XRP escapes a few months of wedge – what’s next? It first appeared in Beincrypto.
