XRP's Elliott wave analysis indicates a wave 2 correction, with $2.33 being a crucial level to watch.
The MVRV ratio at 2.9 indicates neutral sentiment, much lower than the level that typically marks market peaks.
After rising to a local high of $2.65, Ripple [XRP] has seen a slight correction on the price chart. This altcoin has declined for two consecutive days to a low of $2.49.
At the time of writing, XRP is trading at $2.50, down 3.31% on the daily chart.
Cryptocurrency analyst Man of Bitcoin suggests that XRP may have reached a local peak, based on the Elliott wave structure.
Source: X
According to analysts, if the altcoin breaks below the declining resistance level, it will indicate that the correction has begun.
Considering Elliott wave analysis, current support for wave 2 is forming. Wave 2 is the corrective phase leading to a pullback, erasing most of the gains made in wave 1.
This pullback comes particularly as the market begins to experience a rally and investors start taking profits.
The support area for wave 2 is between $2.19 and $1.79, with $2.33 being the next confirmation level for continued downward movement.
The price increase is not supported by demand, data shows.
According to TinTucBitcoin's analysis, the recent price increase of XRP is not supported by actual demand but by the actions of speculative investors.
Source: Santiment
First, considering the price-DAA divergence of XRP has remained negative throughout the past week despite price increases.
A negative divergence creates a bearish signal, regarded as an unsustainable price movement not supported by an increase in users. As a result, prices have risen faster than actual demand, creating an incompatibility.
This could lead to lower prices.
Source: CryptoQuant
Adding support for concerns about demand, XRP's NVT ratio rose from 99 to 207, indicating that value has far exceeded trading volume.
An increasing NVT ratio indicates that the market continues to confirm that the recent price increase is not supported by strong demand, which often leads to price correction.
Although XRP's price is not supported by an increase in users, the MVRV ratio of the altcoin indicates that a peak is unlikely and the correction will not lead to significant losses.
With MVRV at 2.9, XRP remains in neutral territory. History shows that local peaks often appear around 3.2 while market peaks emerge above 3.5.
Source: Santiment
So, what’s next for XRP?
The recent decline in XRP's price seems mainly due to the general market correction. According to analyst Man of Bitcoin, a drop to $2.19 seems unlikely at this stage.
If the downtrend continues, XRP may see a pullback to around $2.34 before potentially having another price increase.
Conversely, if the correction is influenced by overall market sentiment, we might witness a rally that allows XRP to regain the $2.56 level.
Source: https://tintucbitcoin.com/xrp-elliott-wave-co-the-dieu-chinh-moc-234-usd-quan-trong/
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