In recent weeks, XRP has been on a continuous decline, causing losses for many investors. Despite the downward trend, some key holders are actively working to combat the bearish market. Their efforts could play a significant role in stabilizing and potentially reversing XRP’s declining trend.
Investors Remain Optimistic
The network-to-transaction ratio (NVT) for XRP has sharply risen to its highest level in the past month. This ratio typically indicates that the network’s valuation exceeds its current transactional activity, often signaling an upcoming price correction. The increase in NVT suggests that XRP might be overvalued given its current usage.
However, XRP has previously demonstrated resilience, recovering after periods of overvaluation. Investors and holders are hopeful for a similar recovery this time, driven by renewed interest in purchasing.
Long-Term Holders Strengthen Market Stability
XRP’s Liveliness indicator shows a declining trend, signaling that long-term holders (LTH) are actively accumulating despite the price drop. This decrease in Liveliness suggests that these investors are holding onto their tokens, helping stabilize the market. This behavior contrasts with a rise in Liveliness, which would typically indicate increased selling pressure.
LTH accumulation during a price decline demonstrates confidence in XRP’s long-term outlook. These holders are absorbing the selling pressure, positioning themselves to profit when the price recovers, thus providing a critical layer of support for the cryptocurrency.
XRP Approaching Critical Support Loss
Currently, XRP is trading at $2.30, reflecting a two-week downward trend. It is holding just above a critical support level at $2.27. Securing this support is vital for the altcoin to avoid further declines and maintain a potential foundation for future gains.
If bullish factors continue to strengthen, XRP could rebound from the $2.27 support level. Breaking the descending trend could allow XRP to rise to a new support level at $2.38, paving the way for a move toward $2.56. Such a recovery would signal renewed investor confidence.
On the other hand, if XRP loses support at $2.27, the price may drop further to $2.12. Such a decline would invalidate the bullish outlook and extend the ongoing downward trend, leading to increased losses for investors and prolonged bearish pressure.
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