The net value ratio of XRP has reached its highest level in 5 years, indicating overvaluation and a potential 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 overvaluation and general market indicators suggest that the uptrend may not last.
XRP has risen by 22% over the past two weeks, but technical indicators paint a more concerning picture. In fact, the Chaikin Money Flow (CMF) indicator has shown a notable increase, which often suggests that money is entering the market. However, a close look at the flow volumes reveals that the price increase is not supported by significant buying activity.
Instead, the price increase is driven by hype. XRP's price has recently faced a new downward trend, with the altcoin breaking key support levels. But recently, it seemed to have created a bullish pattern that appears ready to break out. Will Ripple break the $2.5 barrier, or is a deep correction ahead? Let us know in the comments.
