Ripple’s XRP has surged nearly 23% over the past week, defying typical market patterns and sparking renewed optimism among investors. With a strong 8% gain on Monday alone, momentum continues to build behind the remittance-focused digital asset. On-chain data and technical indicators suggest that this rally may have further room to run—potentially targeting $0.7400—if key resistance levels are overcome and investor conviction holds.
On-Chain Metrics Signal Strong Investor Confidence
One of the most intriguing aspects of XRP’s recent price movement is its divergence from conventional market behavior. Typically, an increase in exchange reserves—coins held on trading platforms—signals that holders are preparing to sell, often leading to price declines. However, XRP has broken this mold.
According to CryptoQuant, XRP’s reserve on Binance has risen from 3.105 billion to 3.177 billion over recent weeks. Similarly, Upbit’s XRP reserves have climbed from 6.611 billion to 6.634 billion. Despite this accumulation on exchanges, XRP’s price has continued to rise—a rare occurrence that underscores strong market confidence.
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This resilience can be attributed to a crucial on-chain metric: realized profit/loss. Santiment data shows that XRP’s Network Realized Profit/Loss has remained flat at 0 since November 5. This indicates that despite significant gains, investors are choosing not to take profits. Instead, they’re holding onto their XRP in anticipation of higher prices.
Additionally, the percentage of total XRP supply in profit has climbed to 85%, while the Market Value to Realized Value (MVRV) ratio has crossed 56%. The MVRV metric helps assess whether an asset is overvalued or undervalued by comparing its current market value with the realized value (average price paid by all holders). A rising MVRV above 50% typically reflects growing bullish sentiment.
Another encouraging sign is XRP’s Weighted Sentiment, which reached 0.066 in the last 24 hours. This metric combines social media volume and sentiment analysis to gauge investor mood. The upward trend confirms a surge in positive discussion around XRP across forums, news outlets, and crypto communities.
Technical Outlook: Can XRP Reach $0.7400?
At the time of writing, XRP is trading near **$0.6200**, recovering from $3.98 million in futures liquidations over the past 24 hours—$2.95 million of which were long positions. While liquidations can trigger short-term volatility, they often clear out weak hands, paving the way for stronger upward moves.
Technically, XRP has achieved two major milestones over the weekend:
- A breakout above the 200-day Simple Moving Average (SMA)
- A decisive move above the upper boundary of a long-standing descending channel pattern
These developments suggest a potential shift from a bearish to a bullish trend structure. The next immediate resistance lies at $0.6450. A sustained close above this level could unlock further upside momentum.
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If bullish momentum continues, XRP could target $0.7400—a psychologically significant level that would represent a substantial gain from current prices.
On the downside, support is expected near the former upper trendline of the descending channel, now acting as dynamic support. However, traders should remain cautious: the Relative Strength Index (RSI) is currently in overbought territory, indicating a possible short-term correction or consolidation phase.
A daily candlestick close below $0.5608 would invalidate the current bullish thesis and could signal a return to bearish pressure.
Frequently Asked Questions About XRP
What is Ripple and how does it relate to XRP?
Ripple is a financial technology company focused on revolutionizing cross-border payments. It operates RippleNet, a global network used by banks and financial institutions to facilitate fast, low-cost international transfers. While Ripple uses blockchain technology, it is distinct from decentralized networks like Bitcoin or Ethereum.
XRP is the native cryptocurrency of the XRPLedger, a decentralized blockchain developed independently but closely associated with Ripple. The company leverages XRP to enable instant, trustless value transfer across borders, reducing reliance on intermediaries and correspondent banking.
What is XRPLedger?
XRPLedger (XRP Ledger) is an open-source, decentralized blockchain designed for fast and efficient transactions. Unlike proof-of-work blockchains, it uses a consensus protocol that enables transaction finality in 3–5 seconds with minimal energy consumption.
The ledger features a built-in anti-spam mechanism that requires small transaction fees (paid in XRP), helping prevent denial-of-service (DDoS) attacks. It’s maintained by a global community of validators and supports not only XRP transactions but also tokenized assets and decentralized exchanges.
How does XRP facilitate cross-border payments?
XRP serves as a bridge currency through the Interledger Protocol (ILP)—a standardized protocol developed by Ripple. ILP allows seamless value transfer between different ledgers or payment systems (e.g., two banks using different currencies or networks).
For example, when Bank A wants to send funds to Bank B in another country, XRP can be used as an intermediary asset:
- Bank A converts local currency into XRP.
- XRP is instantly sent across borders.
- Bank B receives XRP and converts it into local currency.
This process eliminates the need for pre-funded nostro accounts and reduces settlement time from days to seconds.
Is XRP decentralized?
Yes, the XRPLedger is decentralized and maintained by an independent network of validators worldwide. While Ripple Labs is a major contributor and holds a significant portion of XRP, it does not control the network. Anyone can run a validator node or participate in governance proposals.
What factors influence XRP’s price?
Key drivers include:
- Adoption by financial institutions using RippleNet
- Regulatory developments, especially ongoing legal cases involving Ripple Labs
- On-chain activity such as exchange flows and holder behavior
- Overall crypto market sentiment
- Technical chart patterns and trading volume
Can XRP reach $1?
While price predictions vary widely, reaching $1 would require substantial adoption, regulatory clarity, and increased demand. Given XRP’s large circulating supply (~55 billion), achieving such a price would imply a market cap exceeding $55 billion—possible in a strong bull market with widespread institutional integration.
Core Keywords Integration
Throughout this analysis, key terms such as XRP, XRPLedger, Ripple, cross-border payments, Interledger Protocol, on-chain metrics, MVRV, and technical breakout naturally emerge as central themes. These reflect both user search intent and the underlying fundamentals driving investor interest.
With strong on-chain signals, improving technical structure, and growing institutional relevance, XRP remains one of the most watched assets in the digital asset space—not just for speculation, but for its real-world utility in transforming global finance.
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