XRP has had a bad week, with a 13 percent drop in the last seven days. It has found support at $0.63 and now appears to be on the verge of entering a rally that might take it all the way to major resistance at $0.70, which served as support in early April.
Because it was too weak to withstand the selling pressure from this week, this coin is likely to be at the mercy of BTC and the entire crypto market. The market is showing early symptoms of reversal, and XRP is giving similar signals too. At the time of writing, XRP is trading at $0.63 and is down by more than one percent.
When Should one Accumulate XRP?
A symmetrical triangle was formed by XRP price consolidation during the previous year, which spanned April 2021 to April 2022. A sequence of lower highs and higher lows are connected using trend lines.
This pattern, unlike others, does not have a directional bias and predicts a 70% price move on a breakout. The breakout point is multiplied by the distance between the first swing high and swing low to get the objective.
At the time of writing, the price of XRP is lingering around the triangle’s lower trend line. When the remittance token tagged this barrier the last two times, a tremendous upswing occurred. As a result, if history repeats itself, Ripple could see another surge.
Regardless of what happens, buyers may expect to make a minimum of 70% if they buy after the breakthrough, or nearly 140 percent if they buy at the present price of $0.648.
The 365-day Market Value to Realized Value (MVRV) model supports XRP’s bullish prognosis. This index is used to calculate the average profit/loss of XRP token investors over the last year.
Santiment claims that a value between -10% and -15% is where long-term holders accumulate since short-term holders are losing money, based on many backtests. As a result, this area is known as the “opportunity zone.”
The 365-day MVRV for XRP is currently hanging at –27 percent, and data from the last two years reveals that a local bottom developed at around -30 percent, indicating that a trend reversal could be on the horizon, which also supports the bullish technical prognosis.