XRP has recently experienced a slowdown in its price decline, providing some respite for the altcoin amidst persistent market volatility.
In light of this situation, many investors are seizing the opportunity to accumulate XRP at these lower price points, hoping to secure profits in the future. Analysis of exchange net position change data indicates that the current level of XRP accumulation is the highest seen in over two years. This resurgence in interest reflects a growing confidence among market participants regarding XRP’s potential for recovery and a forthcoming price breakout.
Over the past month, investors have acquired approximately 1.7 million XRP, underscoring a sense of optimism even amid a broader market that remains uncertain. The robust accumulation during this period suggests a belief that XRP possesses significant growth potential and may soon test higher resistance levels, further bolstering market sentiment.
From a macro perspective, the Network Value to Transactions (NVT) ratio has surged in the last 24 hours, reaching its highest level in two months. This spike indicates that XRP’s network valuation is currently outpacing its transaction activity. Historically, such increases in the NVT ratio can signal a cooling of accumulation momentum in the short term. While the prevailing sentiment remains bullish, a high NVT could also suggest potential overvaluation, possibly creating temporary hurdles in XRP’s price trajectory.
Presently, XRP is trading at $2.83, hovering just below the crucial resistance level of $2.85. The upward shift in accumulation creates a positive outlook for the altcoin as it attempts a breakout. If XRP can convert the $2.85 resistance into a support level, it may be poised to advance toward $2.95 and potentially breach the $3.07 mark. Meeting this milestone could reaffirm the strengthening market momentum and validate the confidence expressed by long-term holders.
Conversely, if XRP encounters pressure from the elevated NVT ratio, it might have difficulty sustaining its gains. A failure to overcome the resistance level could lead to a price drop, potentially retracing to $2.73, or even lower to $2.64, which would undermine the bullish outlook and prolong the current consolidation phase. Investors will be closely monitoring these developments as they evaluate XRP’s path forward in an unpredictable market.
