XRP is experiencing its highest accumulation phase in two years, which may indicate a potential trend reversal amid uncertainty in the cryptocurrency market.
Massive Purchases Marking a Turning Point
In one month, investors have accumulated nearly 1.7 million XRP tokens, marking the largest buying spree in over two years. This trend highlights renewed confidence in the asset's outlook despite the prevailing volatility. Such renewed accumulation reflects participants' optimism about the asset's recovery ability and short-term potential upside. The current price is near a crucial technical resistance level of $2.85, and if breached, it could pave the way for levels of $2.95 and then $3.07.
An Overheating Signal? NVT Alerts
Despite increasing buying volumes, on-chain data analysis presents a more nuanced picture. The NVT ratio, which represents network value to transactions, has spiked over the last 24 hours, reaching its highest level in two months. This peak may indicate that the valuation of the XRP network currently exceeds its transactional activity. A high NVT suggests that the accumulation momentum might lose intensity, possibly leading to a technical correction. If rejected at the $2.85 resistance, XRP may drop back towards $2.73 or even $2.64.
Conclusion on XRP's Future
While the resurgence of buyers in XRP is noteworthy, it may also conceal short-term structural weaknesses. A prolonged consolidation phase cannot be ruled out, especially if the NVT ratio continues to rise without corresponding network activity. The ability of XRP to sustainably cross $2.85 and aim for $3 will be critical.
The accumulation phase of XRP indicates a possible trend reversal, but current indicators also reveal risks, making the future situation uncertain.
