The Ripple price has experienced a decline followed by a recovery attempt, but two critical factors could lead to another pullback for the Altcoin in the coming weeks. Despite the price downtrend, on-chain data shows that economic activity on the XRP Ledger Blockchain network is not deteriorating. The XRP Network Value to Transaction Volume (NVT) ratio has been on an upward trend since the beginning of August, suggesting steady growth in underlying economic activity relative to price movement. This indicates that factors other than network demand may be responsible for driving the price down.
On-chain data reveals a downward trend among long-term XRP holders, suggesting that many long-term investors are selling their cryptocurrencies. The Average Cryptocurrency Age, which measures overall Trading sentiment among long-term investors, has declined prior to each of the most prominent XRP price corrections in August. This correlation suggests that if long-term owners continue to close their positions, more pullbacks in the coming weeks could be expected.
Current prices may be unfavorable for new investors, but those who bought XRP months ago during the SEC case turbulence might be more willing to sell. The Market Value to Realized Value (MVRV) ratio confirms this prediction, as investors who bought XRP in the past month will lose 13.2% if they sell today, while those who bought 180 days ago will lose 6.7%. Recent trading patterns show that 180-day holders stopped selling in the 10% losing range during the August 17 crash. If they repeat this trend, they may continue to sell until the Altcoin Price reaches $0.49. If the support level fails, a fall to XRP to $0.45 is possible.
In contrast, long-term XRP investors have the opportunity to make about 5% gains, but if they close their positions break-even and stronger, XRP is likely to face significant resistance above $0.54. However, if the market momentum is bullish, the altcoin price can sustain the wave of increased network activity and immediately recover to $0.60..
#Altcoin #Dive #Deeper
On-chain data reveals a downward trend among long-term XRP holders, suggesting that many long-term investors are selling their cryptocurrencies. The Average Cryptocurrency Age, which measures overall Trading sentiment among long-term investors, has declined prior to each of the most prominent XRP price corrections in August. This correlation suggests that if long-term owners continue to close their positions, more pullbacks in the coming weeks could be expected.
Current prices may be unfavorable for new investors, but those who bought XRP months ago during the SEC case turbulence might be more willing to sell. The Market Value to Realized Value (MVRV) ratio confirms this prediction, as investors who bought XRP in the past month will lose 13.2% if they sell today, while those who bought 180 days ago will lose 6.7%. Recent trading patterns show that 180-day holders stopped selling in the 10% losing range during the August 17 crash. If they repeat this trend, they may continue to sell until the Altcoin Price reaches $0.49. If the support level fails, a fall to XRP to $0.45 is possible.
In contrast, long-term XRP investors have the opportunity to make about 5% gains, but if they close their positions break-even and stronger, XRP is likely to face significant resistance above $0.54. However, if the market momentum is bullish, the altcoin price can sustain the wave of increased network activity and immediately recover to $0.60..
#Altcoin #Dive #Deeper
