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XRP jumped more than 8% as the crypto market showed some real catch-up energy heading into the July 4th weekend.
According to Santiment, most cryptocurrencies are no longer just watching equities hold up while they lag behind. After weeks of fear, ETF outflows, whale hesitation, and weak sentiment, buyers are finally stepping back in near key support. Most cryptocurrencies, including XRP, are trading higher on July 4.
XRP rose from the $1.02 low on July 1 after being stuck in a range between $1.00 and $1.07 for several days, marking the fourth straight day of gains since that date.
Profitability indicators forecasted the current XRP rise, with all-time lows recorded for XRP average returns, hinting at a relief rally.
XRP's 30-day and 365-day MVRV fell to about -45% and -47%, respectively, meaning that both short- and long-term investors are well underwater.
Santiment mentioned that, when taken together, XRP has never seen lower average returns in these timeframes in its more than 12-year trading history, indicating extreme fear. In the last seven days, XRP is up more than 8% as traders interpreted stretched losses as a contrarian signal.
XRP forms golden cross against Bitcoin
The recent price increase has allowed XRP to gain strength against Bitcoin, with a golden cross setup appearing on the 2-hour BTC chart.
The 2-hour 50 MA has risen above the 200 MA, resulting in a short-term golden cross signal even as bullish momentum increases. XRP saw a sharp spike against Bitcoin in the July 4 session, reversing a downtrend from mid-June. The price remains in the $1 range, trading at $1.14 after hitting a 19-month low of $1.01 back on June 25.
Price disappointment hasn't reduced interest in XRP, on-chain data suggests. This week, the XRP Ledger saw 4,941 new wallets created in one day, the strongest network growth spike in over three months, indicating new users are stepping in despite sluggish price action.
The $1.00–$1.05 range is taken to be a likely dip-buy area, with sentiment reaching a 3-month high in FOMO.
Dan Burgin
U.Today Editorial Team
