XRP has been on a steady decline over the past weeks, causing losses for many investors. Despite the falling price, some key holders are actively working to counter the bearish momentum.
Their efforts could play a significant role in stabilizing and potentially reversing XRP’s downtrend.
XRP Investors Are Optimistic
The Network Value to Transactions (NVT) Ratio for XRP has spiked to its highest level in a month. A rising NVT Ratio typically indicates that the network’s valuation exceeds its transaction activity, often signaling an upcoming price correction. This metric warns that XRP might be overvalued relative to its current use.
However, XRP has shown resilience at times in the past by bouncing back after periods of overvaluation. Investors and holders expect a similar rebound this time, fueled by renewed buying interest.
XRP’s Liveliness indicator has been trending downward, signaling active accumulation by long-term holders (LTHs). A decline in Liveliness suggests that these investors are holding onto their tokens despite price drops, aiming to stabilize the market. This behavior contrasts with an uptick, which would indicate increased selling pressure.
LTH accumulation during a price dip shows confidence in XRP’s long-term prospects. These holders are countering bearish trends by absorbing selling pressure and positioning themselves to profit when the price recovers, providing a critical support layer.
XRP Price Nears Losing Key Support
XRP is currently trading at $2.30, reflecting a two-week downtrend. It is holding just above a key support level at $2.27. Securing this support is vital for the altcoin to prevent further declines and maintain a foothold for potential gains.
If bullish factors continue to strengthen, XRP could bounce off the $2.27 support level. Breaking through the downtrend could enable XRP to flip $2.38 into new support, paving the way for a rise toward $2.56. This recovery would signal renewed investor confidence.
Conversely, if XRP loses support at $2.27, the price may drop further to $2.12. Such a decline would invalidate the bullish outlook and extend the ongoing downtrend, leading to increased losses for investors and sustained bearish pressure.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
