The net value of XRP has reached its highest level in 5 years, indicating potential overvaluation and a possible correction in the future.
XRP is currently trading at $2.19 and has risen by 22% over the past two weeks. The altcoin seems poised to break the three-month-long descending channel pattern. However, this rise faces some challenges, as the state of overvaluation and general market indicators suggest that the increase may not last.
XRP has risen by 22% over the past two weeks, yet the technical indicators paint a more concerning picture. In fact, the Chaikin Money Flow (CMF) indicator showed a significant increase, which often suggests that money is entering the market. However, a close look at the volume of inflows reveals that the price increase is not supported by significant buying activity.
Instead, the price rise is driven by hype. The price of XRP recently faced a new downward trend, with the altcoin breaking key support levels. But recently, it seemed to have formed a bullish pattern that looks ready to break out. Will Ripple break the $2.5 barrier, or is a deep correction coming? Let us know in the comments.
