XRP has undergone a prolonged price correction and is now exhibiting key indicators associated with bottom formation. On-chain data shows a clear undervaluation phase, suggesting it has reached a critical threshold for a strong technical rebound.
According to crypto media outlet The Crypto Basic on Feb. 17 (local time), XRP recently experienced a significant pullback from its yearly high and is now seeing intense buying and selling pressure within the liquidity-dense zone between $1.36 and $1.45. Market analysts note that although the price remains within a descending channel, the pace of decline has slowed in recent days, indicating weakening bearish momentum. On-chain metrics also confirm efforts to establish an initial support base without threatening the psychological support level of $1.00.
The MVRV-Z score, a key indicator used to assess whether an asset is undervalued, has recently fallen into negative territory, strongly suggesting that XRP has entered a historical bottom range. Past data shows that whenever the indicator reached similar levels, it was followed by a powerful trend reversal and substantial price recovery. Experts analyze that the current price range presents an attractive accumulation zone for long-term investors, with the suppressed valuation relative to intrinsic value potentially building energy for an explosive rebound.
From a technical perspective, short-term support levels to watch are $1.25 and $1.15. If these levels break down, the decline could intensify, pushing the price toward the $1.10 area. On the upside, the key resistance range to reclaim lies between $1.50 and $1.55. A breakout above this zone accompanied by strong trading volume could neutralize the downtrend and lay the technical groundwork for a new upward trajectory.
Data from on-chain analytics firm Glassnode shows that XRP holdings on exchanges have slightly increased to approximately 12.99 billion XRP, raising concerns about short-term selling pressure. However, the MACD histogram bars are shrinking, indicating a noticeable reduction in bearish momentum, while the Relative Strength Index (RSI) is approaching the oversold level at around 32, signaling a potential rebound. Analysts suggest that a slowdown in exchange inflows and renewed whale accumulation activity would serve as a decisive trigger for a price reversal.
The most closely watched scenario involves a potential short squeeze if XRP breaks above the $1.80 resistance level. A significant concentration of short-position liquidity currently sits above this price, meaning that a move past $1.80 could trigger forced liquidations, rapidly driving the price toward $2 and even $4. As technological advancements in the XRP Ledger converge with the possibility of broader institutional adoption, global investors are closely watching XRP as it appears poised for a powerful move at the tail end of the bear market.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*  <저작권자 ⓒ 코인리더스 무단전재 및 재배포 금지>
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