The price of Ripple's XRP is experiencing downward pressure as more investors choose to cash out their profits. Currently trading at $0.56, the token has dropped nearly 10% over the past week. The profitability of daily transactions has prompted many XRP holders to sell, contributing to the decline.
XRP’s market value to realized value (MVRV) ratio shows it is overvalued, with a current MVRV ratio of 48%. This high figure indicates that many holders are in profit, leading to more sell-offs to lock in gains.
XRP’s Network Realized Profit/Loss (NPL) metric has consistently shown positive values, confirming most traders are selling at a profit. This trend has created a supply-demand imbalance, causing further price declines.
XRP's negative Chaikin Money Flow (CMF) since August 11 suggests market weakness and potential continued price decline. If new demand doesn't counter the sell-offs, XRP's price may drop to $0.52. However, it could reclaim $0.60 if demand spikes.
Source: beincrypto.com ↗