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XRP’s Bullish Setup – Examining Odds of Altcoin Hitting Mid-Term Target
Recent market analysis suggests that XRP may be approaching a critical breakout point, fueled by rising spot taker buy volume and an impending triangle pattern resolution. Despite this encouraging development, the coin’s fundamental health is raising significant red flags.
Currently, XRP’s price is trading at $2.19, poised to potentially flip the key resistance zones of $2.35-$2.61. The long-term symmetrical triangle formation observed since late 2024 further strengthens the case for a decisive move upward, as it has been forming higher lows and lower highs in preparation for this imminent breakout.
On-chain data reveals that spot taker buy volume has remained dominant, hinting at sustained market conviction and anticipation of an impending price surge. This accumulation may well serve as a foundation for any explosive upside movement once the triangle pattern is resolved.
However, it’s essential to consider that this optimism might be short-lived if network activity continues its downward trend. The transaction count plummeted to 383,000, a level not witnessed since March, indicating dwindling usage and reduced interest from new users.
Furthermore, the NVT ratio has spiked to an unprecedented 4510, casting doubt on the validity of XRP’s current valuation. This sudden spike implies that investor speculation is driving the price beyond its utility-based value, potentially creating a precarious imbalance.
In contrast, the Stock-to-Flow ratio showcases a concerning shift towards scarcity, as new supply enters the market at an increasingly slower rate. While this could theoretically support long-term growth, it would require a corresponding surge in demand or on-chain activity to validate XRP’s price appreciation.
As the market awaits the outcome of this impending triangle pattern resolution, the coming weeks will be crucial in determining whether the current bullish setup can translate into real-world applications and network health.
Source: ambcrypto.com
