$XRP Has it been hyped too much?
Recently, there has been a heated discussion in the cryptocurrency community about whether XRP is being inflated excessively. Since the surge of altcoins in November, discussions about XRP haven't stopped.
Some believe that $XRP has risen too sharply and will inevitably correct, but strangely, it has remained quite stable until now.
However, looking at some professional on-chain data, it seems that XRP's price is indeed a bit high and feels somewhat out of sync with the overall market trend.
Thinking back to when XRP broke above $1, many people were taken aback, and now it has soared directly to $2.36.
While some boldly predict it could rise to $5, based on some key indicators on-chain, I feel this path might be a bit precarious.
For instance, the NVT ratio, which measures the alignment between market capitalization and trading volume growth, is now at a high of 477 for XRP, indicating that the market cap is rising too quickly while trading volume is lagging behind, which is not a good sign.
Then there's the DAA, which also looks at the relationship between user participation and price growth. The DAA has dropped by 326.13%, moving in the opposite direction of XRP's price, indicating that there are fewer wallets interacting with XRP, which is not a good omen.
Looking at the 4-hour candlestick chart, XRP was trying to break through $2.40 but got stuck at $2.35, and now it has dropped back to $2.31.
The MACD indicator also shows that XRP's current trend is not looking good, and it might continue to fall, possibly dropping below the $2 mark.
So, is XRP being hyped up right now? It does seem there is some merit to that idea. If this downward trend doesn't stop, XRP might fall towards $1.90.
Of course, the market is unpredictable; if someone suddenly buys in large quantities and boosts demand, XRP could also rise against the trend, breaking through the current resistance and potentially reaching $2.73, which isn't entirely impossible.
Recently, I plan to position myself in a potential coin that's ready to explode; doubling my investment should be quite simple. At the same time, I'm also looking for some potential coins to hold until the end of the year, expecting a space for over 10 times returns is not a problem. If you want to keep up, follow me, leave a message, like, and join my group.
