Key Takeaways
Why is XRP’s demand zone important now?
It’s holding price near $2.80, forming a symmetrical triangle that could trigger a breakout toward $3.19 and higher.
What risks could derail XRP’s rally?
A soaring NVT ratio at 162 signals overvaluation, raising the risk of a sharp correction despite bullish sentiment.
At press time, XRP [XRP] traded at $2.87, posting a modest 0.44% daily gain with a market cap of $172.01 billion.
Despite a 25% drop in daily trading volume to $5.35 billion, the token continues to consolidate within its demand zone.
With speculation growing around RippleNet’s expanding partnerships with global banks, the debate now centers on whether XRP can sustain this momentum and eventually push toward the ambitious $10 mark.
XRP’s demand zone is crucial
XRP continued to consolidate inside a clear demand zone at press time, where buying interest absorbed repeated sell attempts.
The zone has cushioned prices near $2.80, preventing deeper breakdowns despite sustained pressure.
Resistance levels remained visible at $3.19 and $3.59, serving as the next barriers if bullish conviction intensified.
The descending trendline overhead combined with horizontal support to form a developing symmetrical triangle, hinting at a potential breakout setup.
This structure, alongside steady demand, reinforced XRP’s technical footing. It will keep bullish hopes alive as long as stability persists.
Source: TradingView
Are XRP bulls overpowering bears?
Derivatives positioning indicated that market sentiment is skewed heavily in favor of buyers. On Binance, long accounts dominate with 77%, while shorts remain subdued at 23%, producing a Long/Short Ratio above 3.
This suggested that traders anticipated higher prices, yet such imbalances can expose the market to sharp unwinds if sentiment shifts.
Still, optimism remains evident as leveraged positions back to an upward trajectory.
The demand zone’s stability coupled with aggressive long dominance highlights speculative conviction, though sustainability will depend on broader liquidity inflows.
Source: CoinGlass
XRP Social Dominance rises, but…
XRP’s Social Dominance has edged higher, climbing to 2.79% from earlier monthly lows. However, this level is far below the July peak above 11%, reflecting subdued hype compared to prior surges.
While the recovery suggests improving community interest, the absence of euphoric levels signals more tempered expectations.
Historically, sustained growth in social dominance has often accompanied breakouts, yet the current figure shows cautious re-engagement.
Therefore, the community’s renewed attention adds weight to bullish undertones but lacks the frenzy typically linked with explosive rallies.
Source: Santiment
Can soaring NVT levels derail the bullish thesis?
Despite optimism across technicals and sentiment, XRP’s NVT ratio has spiked by 100% within 24 hours, reaching 162.01.
This jump highlights valuation risks as market capitalization grows much faster than transactional activity.
Elevated NVT levels have historically preceded corrections when speculative momentum outran on-chain utility. While long traders and social chatter point to potential upside, the overstretched NVT warns against complacency.
Therefore, while fundamentals may slow an immediate surge, technical resilience within the demand zone provides buyers a chance to challenge resistance.
Source: CryptoQuant
Is XRP truly on track for a $10 breakout?
XRP’s consolidation within its demand zone, long dominance in derivatives, and modest recovery in social engagement reflect strong speculative optimism.
However, the sharp surge in NVT ratio signals caution as valuations stretch beyond transaction volumes.
RippleNet’s global bank partnerships add a compelling adoption narrative, but XRP must balance fundamentals with speculation to sustain momentum.
Ultimately, while a $10 breakout is ambitious in the near term, demand zone stability and institutional traction keep the long-term pathway alive.