XRP Price Nears a Historically Reliable Bottom Signal — Here’s the Level to Watch

XRP is forming a descending wedge on the short-term chart, a pattern historically associated with bullish reversals. The structure suggests a bounce is approaching, but timing depends on reaching a critical inflection point. 

XRP is steadily converging toward that level, making the current zone technically significant for patient investors.

XRP Bottom to Watch

The MVRV Z-Score indicates that XRP has formed a technical market bottom. The metric, which compares market value against realized value, shows XRP is currently trading below its fair value threshold. This undervaluation reading historically precedes meaningful price recoveries across major crypto assets.

However, XRP has not always bounced from the MVRV-defined bottom. Historically, the asset has staged its most reliable recoveries from a different technical trigger. This distinction matters for investors relying solely on the MVRV signal, as premature confidence could lead to poorly timed entry decisions.

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XRP MVRV Z-Score. Source: Glassnode

The realized profit/loss ratio is approaching the critical 1.0 mark, signaling that loss-realizing transactions are nearly matching profitable ones. This metric tracks the ratio of coins moved in profit versus loss, and its current trajectory reflects growing capitulation pressure among XRP holders.

Historically, XRP has spent varying periods below the 1.0 threshold before recovering. A confirmed dip below that mark on the 90-day moving average would signal the investor’s bottom — the point where realized losses peak. That capitulation event has historically served as XRP’s most reliable launchpad for sustained price recovery.

XRP Realized Profit/Loss. Source: Glassnode

XRP Price Can Breakout

XRP is trading at $1.36, sandwiched between the $1.39 resistance and $1.33 support within a descending wedge. The pattern projects an 11% rally upon breakout. Broader market conditions and accumulation behavior will ultimately determine whether that projection materializes in the near term.

Improving global market conditions combined with low-price accumulation could propel XRP above $1.39 and toward $1.43. A confirmed breakout above both levels would validate the wedge pattern and establish a bullish technical structure. Investor confidence returning at these depressed prices would meaningfully accelerate that outcome.

XRP Price Analysis. Source: TradingView

Persistent bearish momentum may keep XRP rangebound between $1.33 and $1.39, with a potential slip to $1.31. While this invalidates the immediate bullish setup, a drop to that level would trigger the investor bottom on the macro scale, historically the most reliable starting point for XRP’s next meaningful recovery.