XRP showed resilience this week, ending Wednesday with steady trading after a rollercoaster stretch marked by macroeconomic uncertainty and shifting investor moods. The token climbed nearly 7% over the last seven days, buoyed by growing optimism around the U.S. CLARITY Act and easing tensions following the recent Middle East conflict.

Blockchain analytics from Santiment reveal that XRP’s 30-day Market Value to Realized Value (MVRV) ratio has crossed above the neutral threshold. This on-chain metric gauges whether recently active wallets hold unrealized gains or losses. For XRP and other major cryptos like Bitcoin, Ethereum, Cardano, and Chainlink, the move past this line suggests many short-term holders have moved into profitability.

Profit-Taking and Long-Term Outlook

Santiment highlights that the market is no longer in the “buy the fear” zone, which was characterized by negative MVRV values. Although there’s no sign of an overheated market, traders should brace for possible profit-taking if bullish momentum weakens. Despite this, analysts remain optimistic about XRP’s longer-term potential.

Celal Kucuker points to Stellar (XLM) as a strong contender on the monthly charts, anticipating it could edge toward $2.50, driven in part by the bullish sentiment gathering around XRP. Given the historical correlation between these two payment-focused tokens, sustained strength in XRP might also propel XLM higher.

ChartNerd observes that XRP is still trapped in a prolonged structural compression, forming wedge and triangle patterns that have historically preceded sharp upward moves. The token currently trades over 70% below its all-time high, indicating this phase is more about accumulation than weakness. If buying pressure continues, this consolidation could set the stage for a significant rally.

Crypto Patel echoes this view, describing XRP’s current state as a "liquidity equilibrium," a balance between buyers and sellers that often hints at an impending breakout.

This material is for informational purposes only and should not be considered financial advice.