XRP has experienced a gradual decrease in value in recent weeks, resulting in financial losses for numerous investors. Despite the downward trend, some major XRP holders are actively engaged in efforts to counter the negative market momentum.
The actions of these key holders could have a significant impact on stabilizing and potentially reversing the declining trend of XRP.
Investors who hold XRP remain hopeful despite the situation. The Network Value to Transactions (NVT) Ratio for XRP has surged to its highest level in a month. A rising NVT Ratio generally indicates that the network's valuation surpasses its transaction activity, often signaling an impending price correction. This metric suggests that XRP might be overvalued in comparison to its current utility.
Nevertheless, XRP has demonstrated resilience in the past by recovering after being overvalued. Investors and holders anticipate a similar turnaround this time, driven by a renewed interest in buying.
The downtrend in the XRP Liveliness indicator suggests that long-term holders (LTHs) are actively accumulating XRP tokens. This behavior indicates that LTHs are retaining their tokens despite price declines, aiming to stabilize the market. This differs from an increase in activity, which would indicate heightened selling pressure.
Accumulating XRP during a price decrease indicates confidence in its long-term prospects. These holders are counteracting negative trends by absorbing selling pressure and positioning themselves to benefit when prices recover, providing vital support.
XRP is currently trading at $2.30, showing a downward trend over two weeks. It is hovering just above a crucial support level at $2.27. Maintaining this support is crucial for XRP to prevent further declines and establish a foundation for potential gains.
With strengthening bullish indicators, XRP may rebound from the $2.27 support level. Breaking the downtrend could lead XRP to establish $2.38 as new support, facilitating a rise towards $2.56. Such a recovery would indicate a restored sense of confidence among investors.
On the contrary, if XRP fails to hold at $2.27, the price could drop further to $2.12. Such a decline would negate the positive outlook and prolong the existing downtrend, resulting in increased losses for investors and continued bearish pressure.