XRP Price Plunge Creates Perfect Rebound Setup—But Here’s Why You Should Tread Carefully

XRP's brutal selloff sets the stage for a potential explosive recovery—if history repeats itself.

THE TECHNICAL BOTTOM FORMATION

Chart patterns suggest XRP approaches critical support levels where previous rallies ignited. The asset's notorious volatility works both ways—sharp declines often precede even sharper upswings.

WHY CAUTION REMAINS CRITICAL

Regulatory uncertainty continues hanging over XRP like a sword of Damocles. While technicals hint at rebound potential, fundamental risks could trigger another leg down.

Market makers love these conditions—they get to buy low while retail investors panic-sell. The age-old Wall Street playbook suddenly feels very crypto-native.

Timing the bottom remains a fool's errand, but the setup looks increasingly tempting for risk-tolerant traders. Just remember—what goes down 80% can always fall another 80% in crypto land.

XRP Investors Need To Wait

The NVT Signal for XRP is showing a notable decline, sitting at a 5-month low, suggesting the altcoin could be undervalued compared to its transaction activity. A lower NVT ratio often reflects accumulation phases, where investors quietly increase exposure before a potential breakout. This makes the current levels worth monitoring for bullish momentum.

Historically, drops in XRP’s NVT have preceded uptrends, as higher transaction activity relative to market value tends to attract renewed confidence. If investors continue accumulating at these lower levels, XRP could build the base needed to break out of its recent slump.

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Short-term holders’ net unrealized profit and loss (STH NUPL) is another indicator pointing toward possible accumulation. XRP’s STH NUPL currently sits NEAR the capitulation zone, where investor profitability dips low enough to trigger renewed buying. Historically, such dips have aligned with rebounds.

However, XRP is not fully in capitulation territory yet. This means that more downside may still occur before investors commit heavily to accumulation. A deeper drop WOULD likely cause near-term losses but could also set the stage for a stronger reversal later.

XRP Price Is Looking At Further Decline

At the time of writing, xrp price trades at $2.85, recovering slightly after a 9% crash drove the price to $2.70 during the intra-day low, over the last 24 hours. Despite the bounce, market signals suggest caution in the short term.

If the indicators play out, XRP is unlikely to reclaim $2.85 as solid support immediately. Instead, the price could fall back to $2.75, which may serve as the real foundation for a reversal. Holding this support will be crucial for buyers to reassert control.

Should broader market conditions improve, XRP could push higher, reclaiming $2.85 as support and testing $2.94 in the near term. However, the longer-term bearish pressure remains, meaning investors may still face volatility before a sustained rally emerges.