🚀📊 XRP’s $2.23 Price Tag: Overvalued or Ready for Another Bull Run?

📈 Is XRP Overvalued?
XRP surged to $2.23 after an explosive November rally, but concerns about sustainability are rising. The Network Value to Transaction (NVT) ratio suggests potential overvaluation, as market cap growth outpaces transaction activity. Unless on-chain utility catches up, XRP could face correction risks.

📊 Decline in Network Activity
The Price-Daily Active Addresses (DAA) divergence shows a sharp 326.13% drop in active wallet engagement despite XRP's price surge. This signals that price momentum isn’t backed by strong on-chain activity, increasing the risk of a price pullback.

⚠️ Bearish Momentum on Charts
On the 4-hour chart, XRP faced resistance at $2.35, pulling back to $2.31. The MACD indicator shows bearish sentiment, with the 12- and 26-period EMAs in negative territory. If bearish momentum persists, XRP could drop to $2.05 or even $1.90.

💡 Key Support and Resistance Levels

Support: $2.05 → $1.90

Resistance: $2.35 → $2.73

🔍 What’s Next for XRP?
XRP’s near-term direction hinges on whether it can break above $2.35 or falls below $2.05. With bearish signals persisting, traders should remain cautious while monitoring market sentiment.