XRP Surges Past $3: Here’s What’s Next After 32% Weekly Rally

XRP has again taken center stage in the crypto market after posting a 32% rally in a week that saw it break through its six-month resistance.

Today, it surged past the $3 mark for the second time this week. Now, XRP is trading at $3.15 at press time, its highest price point since January. This move has reignited bullish sentiment and triggered technical discussions around whether it can sustain its momentum.

Weighing in on XRP’s price action is Brian Quinlivan, Director of Marketing at Santiment. He noted that while Bitcoin’s new all-time highs have dominated headlines, XRP’s movement suggests something more significant is brewing beneath the surface.

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Muted Hype, Strong Performance

In a recent podcast, Quinlivan noted that despite the impressive price surge, XRP remains surprisingly under the radar. Market sentiment hasn’t shown the kind of euphoria typically expected from such a move, largely because mainstream focus has remained on Bitcoin’s breakout.

Essentially, XRP’s surge hasn’t translated into the type of widespread attention that often leads to overheated conditions. This lack of retail frenzy may be a blessing in disguise, Quinlivan noted.

Furthermore, he added that XRP’s initial break above the $3 resistance level earlier this week triggered a wave of sell orders. However, the subsequent retracement has been relatively minor.

In particular, XRP dipped to $2.8085 shortly after reaching $3.05 on Monday. According to Quinlivan, the key question is whether the next leg up can print a higher high.

Indeed, the bulls have reclaimed the stage, with XRP reaching an intraday high of $3.17 at press time.

XRP MVRV Flashes Caution as Price Cools

While short-term sentiment appears stable, on-chain data suggests some caution. XRP’s Market Value to Realized Value (MVRV) ratio has entered a historically risky zone.

According to Santiment’s models, short-term holders are currently up 24.5%, while long-term holders are sitting on unrealized gains as high as 47%. These levels have historically preceded abrupt corrections. 

Notably, the last time XRP’s 30-day MVRV reached similar highs, the price fell more than 40% in the following months. Currently, the MVRV isn’t at its peak. Yet, both short- and long-term metrics are in zones where profit-taking becomes statistically more likely.

What’s Next?

Although technicals suggest a short-term pullback may be due, sentiment indicators imply that any correction might be shallow and brief. If XRP dips below $2.70, retail fear could prompt some to exit positions. 

However, this may set the stage for institutional investors to step in and accumulate, potentially sending the price back above $3 quickly. Quinlivan noted that XRP could retest $3.50 as momentum rebuilds.

Ultimately, attention still centers on Bitcoin, and the broader altcoin rally is just beginning to take shape. In effect, XRP could benefit from rotational liquidity once the market refocuses on large caps beyond Bitcoin.