XRP, the cryptocurrency associated with Ripple, has been subjected to market fluctuations in recent weeks. Currently trading between $0.5 and $0.55, XRP has experienced a 26.61 percent decline in the past 30 days. Despite attempts to break the $0.55 resistance level, sellers have dominated the market, resulting in a bearish sentiment.
The rejection of XRP’s upward movement can be attributed to the overall bearish sentiment in the crypto market. Santiment’s Network Value to Transaction Volume (NVT) ratio indicates a 340 percent increase from 51.66 to 226 between August 18 and August 24. The NVT ratio gauges the underlying transaction activity on the blockchain network relative to its current price performance. With the increased NVT ratio, there has been steady growth in underlying economic activity in relation to the price movement.
Despite the current market conditions, long-term Ripple partners and strategic investors have maintained their positions in XRP. The XRP Mean Coin Age, which measures the sentiment of long-term investors by monitoring the average number of days for coins in circulation to remain unmoved from their wallet addresses, has seen a remarkable increase. After falling by 34.33, it has surged by 10 percent on August 24, reaching 38.30. This indicates the commitment of long-term holders to retain their XRP assets.
Analysts predict a potential 20 percent surge in XRP’s price if transactional activities intensify and long-term investors continue to hold onto their assets. This prediction is supported by the Market Value to Realized Value (MVRV) ratio. Historical patterns suggest that investors may hold out for a 5 percent price surge, but selling pressure at $0.6 may result in multiple rejections.
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However, if the price falls below $0.45, bears could still dictate the market, and it may follow a similar trend to the price crash on August 17. If the $0.45 support level is broken, the price could potentially drop as low as $0.40.
As of now, XRP has a market cap of $27,472,762,992 and a 24-hour trading volume of $826,889,194. In the last 24 hours, the asset has experienced a 1.64 percent decline.
Investors and individuals interested in XRP should conduct their own research before making any investment decisions. The cryptocurrency market is highly volatile, and it is essential to stay informed and updated on the latest market trends and news.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Crypto News Flash is not responsible for any losses or damages incurred as a result of relying on the information provided in this article. Readers should conduct their own research and consult with a financial advisor before making any investment decisions.
