XRP fell below a key on-chain support level on February 5, signaling potential bearish momentum. Trading near $1.25, the drop below its Realized Price indicates most holders are now at a loss, which could prompt increased selling. On-chain metrics show capital flowing out of the network, with technical analysis pointing to a corrective downtrend and key support zones between $1.00 and $0.95.
XRP fell below its Realized Price on February 5, trading near $1.25, a sign that bears are taking control. This level reflects the average cost basis of all coins, and breaking below it signals most holders are in an unrealized loss position.
Alphractal noted this level is a very important on-chain transition point. The failure of bulls to hold this level suggests a potential transition into a bear market.
Key on-chain metrics indicate XRP is in a weak position. The MVRV Z-Score is at a level that has historically distinguished bear market continuation from short-term support.
The NUPL metric is also at its transition line, while the Realized Cap Impulse shows capital flowing out of the network. This indicates further declines could lead to more aggressive selling.
Technical analysis from TradingView confirms XRP is in a corrective downtrend on its weekly chart. The price has declined significantly from its earlier consolidation phase between $2.30 and $3.30.
XRP now trades below key volatility bands, emphasizing ongoing bearish momentum. The Trendoscope indicators show a prevalence of pullback bars, suggesting short-term rallies are likely corrective in nature.
Resistance levels to watch are now between $1.70 and $1.85. Key support zones have been identified between $1.00 and $0.95.
