XRP Drops 4.74% After Failing Key Resistance
Key Takeaways
- XRP saw a decline of 4.74% to USD 2.47 after encountering resistance at USD 2.66.
- On-chain data shows decreasing exchange reserves – a sign of potential accumulation.
- At the same time, high NVT and MVRV values suggest overvaluation and correction potential.
- Technical indicators provide mixed signals, especially around key resistance levels.
Decline Despite Positive Sentiment
XRP, the native token of the Ripple network, is currently showing conflicting signals. Despite a bullish market sentiment, the price dropped by 4.74% within 24 hours to USD 2.47. The decline followed a test of the 0.786 Fibonacci level at USD 2.66 – a well-known resistance zone.
Falling Exchange Reserves: A Sign of Accumulation?
XRP holdings on centralized exchanges dropped by 3.22% to USD 7.28 billion. Fewer tokens available on trading platforms often indicate reduced selling pressure. This may suggest long-term confidence and accumulation by investors.
NVT Ratio Signals Overvaluation
The Network Value to Transactions Ratio (NVT) rose to 2,806 – an unusually high figure. This metric compares market capitalization to transaction volume. A sharp increase often points to overvaluation, as price rises faster than actual network activity. Such divergences frequently precede local peaks.
Development Activity on the Rise
XRP’s development activity increased to 20.21. This signals heightened technical engagement, possibly related to new features or protocol upgrades. While such developments boost long-term confidence, they only impact prices in the short term if accompanied by real demand and usage.
Fewer Short-Term Sales
The spent output metric for coins held 1 to 7 days dropped to 12.22 million. This means short-term holders are currently selling less. This restraint may be seen as a sign that investors expect further price increases. However, this metric should be monitored closely – especially as resistance zones approach.
Technical Analysis: Resistance at USD 2.66 Remains Critical
XRP failed to break the Fibonacci resistance at USD 2.66 and fell back below USD 2.50. While the MACD (Moving Average Convergence Divergence) still shows a bullish signal, momentum is fading. Another significant resistance lies at USD 3.00 – a level that could not be overcome earlier this year.
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MVRV Ratio: Profits, But Below Peak Levels
The Market Value to Realized Value Ratio (MVRV) rose to 253.11%. This metric indicates how much investors are in profit. Although the value suggests some level of profitability, it remains below previous highs. This reduces short-term selling pressure but poses risks if the price continues to rise without improved network usage.
Our Assessment
XRP is at a critical juncture. On the one hand, falling exchange reserves and increasing development activity point to a positive outlook. On the other hand, high NVT and MVRV values indicate potential overvaluation. From a technical perspective, a clear breakout above the USD 2.66 resistance is still lacking. Until this level is sustainably breached, upside potential remains limited. Anyone invested or looking to invest should closely monitor upcoming price movements and look for confirmation through on-chain data.
Sources
- CryptoQuant
- Santiment
- TradingView
| Symbol | XRP |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | 2.15 |
| 24h % | 8.75 % |
| 7d % | -6.37 % |
| 30d % | -8.15 % |
| 60d % | -2.43 % |
| 1y % | 346.65 % |
| Official Links | Website |
| Socials | X |
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