XRP's NVT drop to 161.67 signals growing utility, tighter liquidity, and reduced speculation, hinting at a pivotal demand shift.
Liquidity zones at $1.85–$2.05 show strategic buying as whales build positions, setting the stage for potential price surges.
A bull flag breakout suggests a $5.00 projection, with Fibonacci targets at $4.17 and $6.12 aligning with bullish momentum.
XRP’s NVT Ratio has dropped 25.45% to 161.67, indicating a notable rise in network utility versus market cap valuation. This decline reflects a rare shift in XRP Ledger usage, suggesting diminishing speculative overhead amid stronger transactional throughput.
In a post shared by Lary B, the move “could mean growing utility or fading speculative premium.” Supporting this shift, XRP held on exchanges also declined to $6.27 billion, down 1.82%, signaling tighter sell-side liquidity. With both metrics turning in tandem, market watchers are now eyeing a potential inflection point where fresh demand could trigger outsized price moves.
Looking back at recent on-chain trends, CryptoQuant data shows XRP’s NVT Ratio has hovered between 100 and 400 since late 2023, a range that reflects consistently low transaction density. However, the abrupt fall from January’s unsustainable 4,000 spike to the current 161 level suggests a fundamental reset is underway. Whether this stems from stronger usage or a deflated market cap, the result is clear: utility is rising faster than speculation.
Liquidity Clusters Hint at Buy-Side Repositioning
At the same time, XRP’s entry into high-volume liquidity zones has triggered long liquidations while luring in short sellers. Open Interest slid from 278.4 million to 276.2 million, as over-leveraged positions were unwound. Liquidation volume surged to 235,427 contracts during this shift.
Zooming in on the Binance XRP/USDT pair, the chart shows concentrated volume around $2.00, $1.95, and $1.90. These levels are emerging as key demand blocks, supported by a heatmap revealing dense bid walls between $1.85 and $2.05. With price bouncing within this range, it appears smart money is gradually building positions beneath the surface of retail-driven volatility.
Even though the hourly candle printed an 11.56% intraday drop, this zone’s activity implies whales may be laying strategic buy orders. If bulls reclaim momentum, the crowded short positioning could backfire, opening the door to a squeeze-driven reversal.
Bull Flag Builds Toward $5 Projection
Technical momentum is also favoring the bulls. XRP’s weekly chart reveals a classic bull flag structure forming just under key resistance. The recent close above $2.30 confirmed a potential continuation setup, driven by strong volume tracing back to the rally from $0.50.
https://twitter.com/Bitcoinsensus/status/1930659872426647963
Bitcoinsensus notes the flagpole’s projection points toward $5.00, while a clean breakout candle, free of upper wick noise, signals clear buyer intent. Analysts now cite Fibonacci targets at $4.17 and $6.12, with thinning overhead resistance supporting that outlook. As speculation swirls around a possible SEC resolution by mid-June, XRP’s setup appears primed for breakout extension.
Speculators Shift, But Structural Bulls Hold Ground
While some traders rotate into short positions, Open Interest data suggests most are hedging, not abandoning. Meanwhile, community chatter points to strategic accumulation, not panic, as buyers defend the $2.00 zone.
Looking across the charts and chain data, the convergence of tightening supply, rising utility, and bullish technicals suggests XRP is aligning for a major move. Despite short-term volatility, the foundation appears to favor a longer-term breakout trajectory.
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