What’s Cooking for XRP?
According to Vlad Hyrniv, altcoin sentiment is cooling as Bitcoin dominance climbs, with the Altcoin Season Index dropping to 37, which is below the 75 threshold that signals an alt season.
The market analyst believes that this is one of the reasons why XRP has pulled back to the $3.13 zone.
Nevertheless, all hope is not lost because the 3rd-largest cryptocurrency by market cap is still holding strong above the 50-day EMA at $2.64.
Furthermore, the relative strength index (RSI) is at around 55, hinting at a pause not a breakdown because momentum remains neutral.
Therefore, XRP is showing strength by holding above the crucial 50-day EMA, a technical indicator widely used to gauge mid-term momentum and trend health.
Notably, the resilience above the 50-day EMA signals that bullish sentiment remains intact. The market may be witnessing a healthy pullback rather than the start of a broader trend reversal.
Historically, corrections of this nature have provided opportunities for re-accumulation, especially when price remains anchored above key moving averages.
Technical analysts point to a larger Elliott Wave structure unfolding, with the recent drop likely forming part of a Wave 4 correction.
According to crypto strategist Man of Bitcoin, a sustained close above $3.25 could mark the completion of this corrective phase, paving the way for Wave 5 that could push XRP to a new high of $5.50. The fact that price has not breached the 50-day EMA supports this bullish scenario.
On-chain data also backs XRP’s underlying strength. XRP Ledger wallets have surged to 7.24 million amid growing interest in its DeFi capabilities and cross-border use cases.
Daily active addresses remain elevated, and whale accumulation continues despite the price drop, indicating confidence among large holders.
Conclusion
While XRP’s 16.61% drop from its ATH may appear bearish on the surface, the broader picture shows an asset undergoing a standard market correction.
As long as XRP holds above the 50-day EMA, the path of least resistance remains upward, making the current zone a potential launchpad for the next leg higher. Traders are now watching the $3.25 level closely for confirmation of renewed bullish momentum.
