XRP Nears Potential Market Bottom as On-Chain Signals Turn Bullish

Analysts continue studying blockchain data to identify potential turning points in cryptocurrency markets. According to insights shared by Tokocrypto, several on-chain indicators now suggest that XRP may currently trade below its fair value.

One metric drawing attention is the MVRV Z-Score, which compares market value with realized value. This indicator helps analysts determine whether an asset trades at a premium or discount relative to historical price behavior. When the metric drops to lower levels, it often signals that investors have already sold a large portion of their holdings at a loss.

Such conditions frequently occur near market bottoms because selling pressure becomes exhausted. Another indicator focuses on the realized profit-to-loss ratio, which currently sits close to 1.0. This level historically appears during periods of capitulation, when investors stop selling aggressively and the market begins stabilizing.

In previous cycles, similar conditions preceded major recoveries for several cryptocurrencies. Because of these signals, some analysts believe XRP could approach the end of its recent correction phase.

Technical Patterns Indicate Possible Breakout

Beyond on-chain data, chart patterns also show potential signs of a reversal. Technical analysts identified a descending wedge formation on the XRP price chart. This pattern forms when price movements gradually compress within downward-sloping trendlines.

In many cases, descending wedges appear before bullish breakouts. If the pattern resolves upward, analysts expect XRP to challenge key resistance levels. The first major resistance appears near $1.39. A confirmed breakout above this level could push the price toward $1.43, representing roughly an 11 percent potential move from recent levels.

Recent market activity already shows early signs of strength. On March 13, 2026, XRP briefly climbed above $1.39, gaining roughly 3 percent during the trading session. This movement suggests that buyers may already be stepping back into the market.

Market Stabilization Could Support Recovery

At the same time, analysts continue watching downside support levels. If the price fails to maintain momentum, the next key support sits around $1.31. A break below that level could extend the correction before a sustained recovery begins.

Institutional activity also appears relatively stable. Reports indicate zero net inflows or outflows from XRP exchange-traded funds, suggesting that large investors have paused aggressive selling. This stabilization often creates conditions for gradual price recovery.

While uncertainty remains in the broader crypto market, the combination of undervalued on-chain metrics and bullish technical patterns has sparked renewed optimism around XRP’s short-term outlook. Investors will likely monitor resistance levels closely in the coming days to determine whether the asset can confirm a broader trend reversal.

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