Ripple’s XRP Price Breaks Above $0.52 as Bullish Traders Take Control
Ripple’s XRP price broke above the $0.52 resistance level on Thursday after a period of stagnation. The surge in price can be attributed to bullish whale investors who have been accumulating XRP coins. On-chain data reveals that these investors added another 160 million XRP to their wallets between September 16 and September 22, worth approximately $83.2 million.
Overbought Territory and Growing Overvaluation
While the recent price gains are positive, XRP is approaching overbought territory. The Network Value to Transaction Volume (NVT) ratio has been steadily increasing since September 1, indicating that the network’s transactional activity is not keeping up with the price increase. This suggests that XRP may be growing increasingly overvalued.
Possible Retracement Below $0.50
If network demand does not significantly increase, there is a possibility that XRP price could sharply retrace below $0.50 once the bullish whale investors reduce their buying pressure. The Market Value to Realized Value (MVRV) ratio also supports this prediction, as investors who bought XRP in the past month are currently holding only 2% unrealized profits.
Hot Take: Potential for Gains and Profit-Taking
While some bullish investors may hold out for gains at $0.60, others may choose to book profits at the 10% margin when XRP reaches $0.55. However, if network demand increases and market momentum turns bullish, XRP price could quickly reclaim $0.60.
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