XRP Smashes Through $3 Again — Analysts Say the Rally May Only Be Getting Started

XRP has surged past the $3 mark for the second time in a week, gaining over 32% in just seven days and marking its highest price level since January. As of press time, the asset trades at $3.15, reflecting renewed bullish interest after months of consolidation below a critical resistance level.

This surge follows a broader upswing in the crypto market, driven primarily by Bitcoin’s record-breaking climb to a new all-time high.

Analyst: XRP’s Move Suggests Bigger Momentum Than Headlines Show

Brian Quinlivan, Director of Marketing at Santiment, noted that XRP’s sharp rally has gone relatively unnoticed compared to the media buzz around Bitcoin. In a recent podcast, Quinlivan said XRP’s strength appears more organic and underhyped, a setup that could work in its favour.

“Bitcoin is grabbing the headlines, but XRP is making a serious move with minimal retail euphoria,” he observed.

Quinlivan explained that the lack of hype could reduce the risk of a blow-off top, mainly since XRP hasn’t triggered the kind of frenzy that usually precedes sharp corrections.

Minor Retracement Shows Bulls Still in Control

Earlier this week, XRP initially broke above $3.05, triggering a wave of sell orders. However, the price only dipped to $2.8085 before reversing back upward. At the time of reporting, XRP has reclaimed an intraday high of $3.19, showing an 8.09% surge in 24 hours.

Quinlivan emphasised that XRP’s ability to recover quickly indicates that bulls remain firmly in control, but the next challenge lies in printing a new higher high above this week’s peak.

On-Chain Data Flashes Warning: MVRV Hits Danger Zone

While short-term sentiment remains bullish, on-chain metrics are hinting at potential headwinds. Santiment’s Market Value to Realised Value (MVRV) ratio for XRP has entered historically risky territory.

Current data shows:

Short-term holders are sitting on 24.5% unrealised profits
Long-term holders are up 47%

These MVRV levels have often preceded price corrections. Quinlivan pointed to the last time XRP’s 30-day MVRV reached similar highs, after which the price plummeted more than 40% in the following months. Although XRP’s MVRV hasn’t peaked yet, the trend suggests that increased profit-taking could be imminent.

Support Levels and What to Expect Next

If XRP dips below $2.70, retail traders may start to panic. However, this drop could trigger institutional accumulation, especially if large holders view the dip as a buying opportunity at a discount.

Quinlivan believes a strong bounce from these levels could push XRP toward the next technical target of $3.50, particularly as broader market momentum rotates into large-cap altcoins.

XRP Could Benefit From Broader Altcoin Liquidity Rotation

As Bitcoin continues to attract mainstream attention, altcoins like XRP are quietly building momentum. Analysts expect that once capital begins rotating out of BTC into other top-tier tokens, XRP could be one of the primary beneficiaries.

The broader altcoin rally, still in its early stages, may push XRP into a stronger upward trajectory if volume increases and resistance levels continue to fall.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.