🤔 What to Expect from $XRP Price in February 2025

XRP reached a new all-time high of $3.41 on January 16. However, it has remained rangebound since then, facing resistance at $3.27 and finding support at $2.94.

While this sideways movement indicates a relative balance between buying and selling pressures, on-chain data suggests that a downside breakout may be on the horizon in the coming weeks.

🔸 Surge in Profit-Taking May Threaten New Gains

XRP experienced a dramatic 500% surge in November 2024, fueled by Bitcoin’s rally and Donald Trump’s 2024 presidential election win. Following this, the token witnessed a minor correction, settling between $2.6 and $2.0 before bouncing back.

By January 16, #XRP broke through the $3 resistance and reached a new all-time high of $3.41. Since then, the altcoin has traded within a price range, suggesting that neither the buyers nor sellers have full dominance. However, BeInCrypto’s assessment of XRP’s on-chain performance hints at growing bearish pressure, which may result in a price dip in the coming weeks.

For example, XRP’s Market Value to Realized Value (MVRV) ratios assessed over multiple moving averages suggest that the altcoin is overvalued, which could prompt holders to sell for profit. According to Santiment, as of this writing, the token’s seven-day and 30-day MVRV ratios are 1.50% and 14.17%, respectively.

An asset’s MVRV ratio identifies whether it is overvalued or undervalued by measuring the relationship between its market value and its realized value. When the ratio is negative, the asset’s market value is lower than its realized value. This suggests that the market is undervaluing the cryptocurrency compared to what people originally paid for it.

On the other hand, as with XRP, when the ratio is positive, its market value is higher than the realized value, suggesting it is overvalued. This metric suggests that XRP’s current price of $3.10 is higher than the acquisition basis for many of its holders.