Not just a recovery – Why a stronger rally for XRP may be on the cards

ambcrypto.com:

The broader crypto-market is seeing some optimism return as many digital assets, including Bitcoin, shrugged off their near two-month long bearishness. Many altcoins have also begun recovering, with XRP seeing one of the quickest and sharpest rallies. On the charts, a breakout can be pictured as XRP prices tore a hole through the $0.8-resistance. This is significant because it was a crucial level of support earlier during the downfall.

Since breaking out of the 50-day moving average and eventually, the imposing downtrend (yellow line), on 4 February, XRP has seen a meteoric rally of nearly 50%.

$0.8 would now serve as a region of strong support, keeping the drawdown pretty low while keeping the upside open till around $1. The region between $0.8 to $1 can be a possible accumulation zone, provided broader market conditions don’t deteriorate suddenly and XRP’s momentum can continue unperturbed.

XRP/USDT | Source: TradingView

Along with favorable technical indications, metrics also seem to suggest growing optimism. The adjusted Price DAA Divergence for XRP, for instance, has been flashing green signals for a while now.

Now, it must also be noted that this is a significantly strong indication since the metric has been flashing buy signals despite a period of general market decline.

Adjusted Price DAA Divergence | Source: Santiment

Additionally, XRP’s MVRV ratio has been staging a major recovery too. Thanks to XRP’s latest price rally, the MVRV ratio has broken out of its 200 period moving average – providing further strength to the bullish narrative.

Along with that, the MVRV-Z score has been recovering from its lows. While it’s still in the negative zone, it is providing an attractive buying opportunity, historically speaking.

MVRV-