Are XRP and ADA Leading a Potential Altcoin Relief Rally This Week?

• Critical indicator threatens XRP with potential bear trend.
• XRP bounces off crucial support despite critical bearish signal.
• Coinbase’s CFTC approval boosts ADA bullish potential.

Current on-chain conditions suggest a developing bearish long-term signal for XRP. Its Market Value to Realized Value (MVRV) ratio, which compares market price to the average price holders paid, reportedly dipped below its 200-day moving average.

This specific crossover is still in its early stages and remains unconfirmed as a major trend shift. However, according to technical analysts like Ali Martinez, a sustained MVRV crossover to the downside has historically sometimes signaled a broader macro shift in XRP’s price action direction.

XRP came under notable bearish pressure during the last week of March. It consistently closed below its opening price for six of the past seven trading days then. The cryptocurrency’s price tumbled from near $2.50 to reach $2.020 by the close of March 31.

Is XRP Holding Within Its Recent Range?

Although XRP’s MVRV showed these early potential bearish signals, the altcoin remains within an established sideways trading range for now. XRP traded mostly between $2 and $3 in the past two months, only briefly testing below the $2 support level.

Consistent with this range, XRP bounced off support recently. It traded near $2.1062 at the time of writing Wednesday, up 7.12% from Monday’s low.

Does ADA Offer a Potential Parallel?

XRP’s latest price structure resembles ADA’s recent trend. The Cardano native token also rebounded from a slump into a notable support region. ADA gained 7.92% after its own Monday decline to trade near $0.6693 at press time. Its move signals a potential upsurge attempt from the bottom of its own established range.

Related: ADA Bulls Need to Crack This Level for Rally to Continue on April 2

Separately, recent approval for Coinbase to offer CFTC-regulated Cardano futures builds a tailwind that could support ADA’s bullish momentum.

The crypto exchange confirmed the approval Monday after a standard two-week review period by the CFTC for its application. 

Why Are XRP and ADA Closely Watched?

XRP and ADA have gained attention following events related to the projects’ perceived closeness with the current US administration and other developments within their respective ecosystems. 

Many analysts monitor these cryptocurrencies to help analyze the broader altcoin market. They consider their market status and the potential leadership role they could provide during market shifts.