Current on-chain conditions suggest a developing bearish long-term signal for XRP

This specific crossover is still in its early stages and remains unconfirmed as a major trend shift. However, according to technical analysts like Ali Martinez

Current on-chain conditions suggest a developing long-term signal for XRP. Its Market Value to Realized Value (MVRV) ratio, which compares market price to the average price holders paid, reportedly dipped below its 200-day moving average.

This specific crossover is still in its early stages and is yet to be confirmed as a major trend shift. However, according to technical analysts like Ali Martinez, a sustained MVRV crossover to the downside has sometimes signaled a broader macro shift in XRP’s price action direction.

“The $XRP MVRV Ratio just dipped below its 200-day moving average. This crossover may be signaling a macro trend shift in price action!”

XRP came under notable bearish pressure during the last week of March. It consistently closed below its opening price for six of the past seven trading days. The cryptocurrency’s price tumbled from near $2.50 to reach $2.020 by the close of March 31.

Is XRP Holding Within Its Recent Range?

Although XRP’s MVRV showed these early potential bearish signals, the altcoin remains within an established sideways trading range for now. XRP traded mostly between $2 and $3 in the past two months, only briefly testing below the $2 support level.

Consistent with this range, XRP bounced off support recently. It traded near $2.1062 at the time of writing Wednesday, up 7.12% from Monday’s low.

Does ADA Offer A Potential Parallel?

XRP’s latest price structure resembles ADA’s recent trend. The Cardano native token also rebounded from a slump into a notable support region. ADA gained 7.92% after its own Monday decline to trade near $0.6693 at press time. Its move signals a potential upsurge attempt from the bottom of its own established range.

Recently, the Commodities Futures Trading Commission (CFTC) also approved Coinbase to offer CFTC-regulated Cardano futures contracts. The crypto exchange confirmed the approval Monday after a standard two-week review period by the CFTC for its application.

Why Are XRP And ADA Closely Watched?

XRP and ADA have been coming into close focus throughout recent events. These developments include the projects’ perceived closeness with the current US administration and other stirrings within their respective ecosystems.

Many analysts are following these cryptocurrencies to help them analyze the broader altcoin market. They consider their market status and the potential leadership role they could exert during market shifts.

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