XRP from Ripple Increases 5%, Yet On-Chain Information Signals More Dangers Looming

Ripple's XRP saw a 5% gain in 24 hours, trading near $3 after a retreat from its July peak. Despite the slight increase, on-chain data raises concerns about further risks. The token has entered a consolidation phase, with a lifetime range between $2.77 and $3.32. On-chain metrics signal that $2.80 is a temporary support level, with a firmer support level below $2.48. The Market Value to Realized Value (MVRV) ratio has also formed a death cross, increasing the likelihood of extended pullbacks.

Additionally, large XRP holders sold more than 700 million XRP, worth over $2.1 billion within a single day, adding to immediate selling pressure and potentially influencing smaller market participants to exit positions.