Traders Dump XRP Holdings After Disappointing Monthly Close While AI Altcoin Crosses 75,000 Holders
Forecasts for Ripple’s XRP price have been optimistic; some market observers see a rise to $20 this cycle. However, on-chain data and market dynamics provide a closer look that suggests this goal could be overly ambitious.
Santiment claims that XRP’s Network Value Ratio (NVT) ratio has hit 477, meaning the market capitalization of Ripple exceeds the increase in network transactions. Historically, such high readings have been linked to overpriced conditions, raising the prospect of a market correction.
Furthermore, the Price-Daily Active Addresses divergence statistic indicates a decline in XRP Ledger user involvement. Despite the token’s increased price, the Ripple stablecoin launch of RLUSD, fewer wallet addresses are connecting with the network, dropping by more than 326%.
This discrepancy implies that organic user activity does not match the recent price action, casting doubt on the long-term viability of the XRP surge. Technical analysis also indicates bearish momentum. Ripple has seen strong resistance around $2.35 before returning to $2.31.
Purchasing pressure is fading as the Moving Average Convergence Divergence indicator on the 4-hour chart turns negative. XRP’s recent consolidation patterns resemble those experienced before large drops, raising the prospect of a pullback to $1.90 in a very bearish scenario. The RLUSD launch has failed to push the XRP price above.
The market experts predicted a highly bullish scenario for Ripple following the launch of RLUSD. The launch of RLUSD was expected to cause a massive surge in the XRP momentum. However, these predictions remained futile!
While long-term growth prospects for XRP remain optimistic, particularly given its institutional use cases and progress in the SEC lawsuit, reaching $20 this cycle is implausible. Instead, the token may experience increased volatility and struggle to maintain its recent gains amidst larger market headwinds.
