#Crypto Market Rebound#  XRP Breaks Out of Multi-Month Wedge Formation: What's Next?

XRP has now broken out of its long-standing downtrend. On July 9th, it gained more than 4%, breaking out of a rising wedge formation, signaling a bullish reversal.
After weeks of stagnant movement, this breakout brings key resistance levels into focus. But do on-chain metrics confirm this move?
XRP Holder Count Rising Again
Despite price fluctuations, the total number of XRP holders has been increasing parabolically since the beginning of the year. This number now stands at approximately 6.64 million, indicating growing long-term interest in the asset.
This sustained growth reflects increasing wallet creation and user retention rates and indicates rising investor confidence over time. While not always correlated with immediate price movements, a rise in the number of holders generally supports broader market power.
The number of holders tracks the total number of unique wallet addresses holding a non-zero amount of XRP. A rising number of holders indicates that more users are accumulating or holding XRP over time, and this is generally interpreted as a sign of network strength and investor confidence.
XRP Appears Undervalued Based on MVRV Z-Score
One of the most striking signals in XRP's on-chain data is the MVRV Z-Score (Market Value to Realized Value Z-Score), a metric used to assess whether an asset is undervalued or overvalued relative to its historical fair value.
Currently, XRP's MVRV Z-Score is hovering around 2.13, still at the lower end of the historical scale. While not in deep undervalued territory (usually below 1), it remains below the overheated levels of 5-6 that typically precede local peaks.
This suggests that XRP is not overvalued and that the current price action is supported by a healthy supply-demand dynamic. This position supports the possibility of continued upward movement, particularly as the score gradually rises, reflecting growing market confidence.
The MVRV Z-Score compares XRP's current market value to the average price at which all coins were last traded (realized value). A low score typically indicates that investors are at a loss or near break-even and signals a potential upward movement.
A rising Z-Score (but not by a significant amount) indicates improving sentiment and increasing profitability, both of which can fuel an uptrend.
Wedge Breakout Confirmed, but XRP Price Faces Resistance
XRP price broke through the upper trendline of the falling wedge formation at $2.29 and is currently trading around $2.39.
However, immediate resistance lies at $2.48. If the bulls manage to break above this level, the next potential targets are $2.60, $2.83, and ultimately $3.13.
However, traders should still exercise caution. A drop below $2.26, the level where the old wedge resistance turned into support, could invalidate the breakout. A drop below $2.08 would confirm a deeper pullback and push XRP back into price stagnation.
To truly gain momentum, the XRP price needs to stay above $2.26 and turn $2.48 into support. Until then, the rally remains on uncertain ground.