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Although XRP is one of the most active networks, here’s why that isn’t enough

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  • XRP has struggled to make a meaningful rally this year. Despite reaching an annual high of $1.97 in April 2021, the asset has been on a stop-start rally as a result of the SEC’s involvement
  • Although XRP/PHP had good liquidity, the decrease was visible. On the other hand, the XRP/MXN lanes on Bitso continue to trade at higher levels
  • This is a positive bullish indication, however, the MVRV indicator indicates that there is a bearish contradiction

XRP has struggled to make a meaningful rally this year. Despite reaching an annual high of $1.97 in April 2021, the asset has been on a stop-start rally as a result of the SEC’s involvement. Bitcoin, Ethereum, and Cardano have all been able to set new all-time highs, but XRP has not. The asset was back below the psychological $1 level at the time of publication. Furthermore, there appeared to be basic usage disparities throughout the whole sector. Some of the biggest Ripple ODL corridors have very low liquidity indices, according to data collected by Liquidity Index Bot. Since the first week of September, the liquidity index for XRP/EUR has been negative, while the XRP/AUD corridors have been negative since July 2021.

Although XRP/PHP had good liquidity, the decrease was visible. On the other hand, the XRP/MXN lanes on Bitso continue to trade at higher levels. These indicators may now indicate that XRP’s blockchain use has dwindled. The story has been considerably different, according to Messari’s active chain statistics. XRP was one of the top ten most active networks in terms of on-chain statistics at the time of writing, enabling approximately $822 million in adjusted transactions in the previous 24 hours. Only Bitcoin, Ethereum, Cardano, and Bitcoin Cash were ahead of XRP. The present market is really suggestive of a buy signal for XRP, according to Adjusted Price DAA divergences, since active addresses have grown amid a period of price fall. 

This is a positive bullish indication, however, the MVRV indicator indicates that there is a bearish contradiction.  The Market Value-to-Realized Value Ratio, or MVRV, seems to indicate that XRP investors are currently experiencing significant losses. Furthermore, extended consolidation in the press time range may make these decreases more likely. The market’s structural resistance persists near $1.05-$1.10. ODL corridors, on the other hand, require liquidity replenishment, which may be a game-changer. Several projects have had greater rallies in the last year as a result of utility. In order to achieve a long-term rally, XRP’s active chain statistics must now coincide with its ODL movement.

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