🪙 XRP Approaching Potential Market Bottom as On-Chain Signals Turn Bullish

Analysts continue to examine blockchain data to identify potential turning points in the cryptocurrency market. According to insights shared by Tokocrypto, several on-chain indicators now suggest that XRP may currently be trading below its fair value.

One indicator drawing attention is the MVRV Z-Score, which compares market value to realized value. This metric helps analysts determine whether an asset is trading at a premium or discount relative to historical price behavior. When this indicator drops to lower levels, it typically signals that investors have sold substantial holdings at a loss.

🔸 Technical Patterns Indicate Possible Breakout
Beyond on-chain data, chart patterns are also showing signs of potential reversal. Technical analysts have identified a descending wedge pattern on XRP's price chart. This pattern forms as price movement gradually compresses within downward-sloping trendlines.

In many cases, descending wedges appear before bullish breakouts. If the pattern resolves upward, analysts expect XRP to challenge key resistance levels. The first major resistance appears near approximately $1.39. A confirmed break above this level could push price toward $1.43, representing a potential move of roughly 11% from recent levels.

🔸 Market Stability May Support Recovery
Meanwhile, analysts continue to monitor downside support levels. If price fails to maintain momentum, the next key support sits at approximately $1.31.

Institutional activity also appears relatively stable. Reports show net inflows or outflows for XRP exchange-traded funds at zero, indicating that large investors have paused aggressive selling. This stability typically creates conditions for gradual price recovery.