XRP Powers Ahead with Rare MVRV Golden Cross Signal

XRP has seized attention in the crypto community once again, as a rare and significant development unfolds — the appearance of a golden cross in the Market Value to Realized Value (MVRV) ratio. This technical indicator has historically aligned with major bullish runs, sparking speculation about whether a powerful rally is imminent.

The MVRV ratio helps investors assess whether an asset is overvalued or undervalued by comparing its current market value with the average purchase price of its holders. Observing this ratio through a technical lens, a golden cross — when a shorter-term average crosses over a long-term average — is particularly uncommon and is often considered a strong bullish sign.

Crypto analyst Ali Martinez recently pointed out that similar patterns in XRP’s MVRV ratio historically led to substantial gains. In previous instances, XRP surged 630% and 54%, respectively, following the same signal. “The signal just appeared again,” Martinez highlighted, implying that a major upward shift could once more be on the horizon.

Currently, XRP is trading above $3, specifically around $3.32, which reflects a modest 0.28% dip in the past 24 hours but a notable 12% increase over the last week. If XRP were to mirror its most explosive past surge of 630%, it could potentially soar to nearly $24. On a more conservative note, repeating the smaller 54% rise would still place the price around $5.11, which presents a considerable gain from current levels.

The narrative surrounding XRP has also been bolstered by a major legal shift. Ripple Labs and the U.S. Securities and Exchange Commission have jointly concluded their appeals in the long-running lawsuit regarding XRP’s status. This resolution marks the closure of a five-year legal standoff, significantly lifting the weight of regulatory uncertainty from XRP’s trajectory.

Following this development, XRP saw heightened market activity on Thursday, carrying momentum into Friday trading. The token touched $3.38 and surpassed Solana in daily futures trading volume, which surged 208% to reach $12.4 billion. Moreover, open interest climbed 15%, rising to $5.9 billion based on data from Glassnode.

If bullish momentum holds strong, traders are eyeing the next resistance level at $3.66 — a point where sellers are expected to push back. The current positive funding rate suggests long positions dominate the market, which could heighten liquidation risk if prices begin to decline unexpectedly.

In a scenario where sell pressure reemerges, XRP bulls will aim to establish support at the $3 mark. Should this level give way, $2.96 would likely serve as the next safety net, followed by the 50-day simple moving average (SMA) at $2.76, which could act as a final base for a potential rebound.

Related: XRP Price: $12M Max Pain for Bears

The combination of a favorable technical signal, reduced regulatory headwinds, and spiking trading interest positions XRP at an intriguing juncture. While no prediction is guaranteed in crypto markets, the convergence of these factors paints a compelling picture for XRP’s potential in the coming weeks.