Key Moments of Ripple $XRP : Whales May Be Selling, Data Shows Red Flags!
Although since November, the price of XRP has skyrocketed like a rocket, everyone feels it may pull back a bit, but strangely, that hasn't happened yet. However, looking at the on-chain data, we have to say that the current price of XRP might be a bit high and doesn't quite match the current market conditions.
About a month ago, after resting for a long time, XRP finally broke through the $1 barrier. Some experts even boldly predicted that XRP could rise to $5! However, the on-chain data has poured some cold water on us, suggesting that it may not be that simple.
There is something called the NVT ratio, which acts like a balance between asset price and transaction growth. If this ratio decreases, it means that transaction growth is faster than asset price, indicating that the asset may be undervalued, and there is still room for price increases.
However, the current NVT ratio for XRP is 477, which is a bit scary, meaning that the asset may be overvalued.
There is another indicator, which is the difference between price and Daily Active Addresses (DAA). This indicator looks at how many people are interacting with XRP and compares it to the price increase.
If this difference is increasing, it indicates that people's interaction with XRP supports the price rise, which is a good sign. However, currently, the DAA difference has decreased by -326.13%, meaning the number of wallets interacting with XRP is decreasing, which is not good news.
So, if this data continues like this, the price of XRP may drop below $2! We need to be careful!
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