XRP prices continue to struggle under a long-term downtrend that has been heavily on recovery. Altcoin has recently dropped sharply along with the wider market, falling as low as $2.70 before a slight recovery.
The pullback exposed its weaknesses, but also highlighted the possibility of rebounding.
XRP investors need to wait
The NVT signal in XRP shows a noticeable drop, sitting at a 5-month low, suggesting that AltCoin could be underestimated compared to its transaction activity. A low NVT ratio often reflects the accumulation stage, with investors quietly increasing exposure before potential breakouts. This makes current levels worth monitoring bullish momentum.
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Historically, the decline in XRP’s NVT has preceded the uptrend. This is because transactional activity higher than market value tends to attract new trust. As investors continue to accumulate at these lower levels, XRP can build the foundation they need to get out of their recent slump.
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Short-term holders’ net unrealized gains and losses (STH NUPL) is another indicator of the likelihood of accumulation. XRP’s Sth Nupl is currently close to the surrender zone, and investors’ profitability is soaked low enough to cause renewed purchases. Historically, such dips coincided with rebounds.
However, XRP is not yet entirely in the surrender area. This means that more drawbacks may still occur before investors commit themselves to accumulation. Deeper drops can cause short-term losses, but they could also set up a stronger reversal stage later.
XRP prices are considering further reductions
At the time of writing, the XRP price was traded at $2.85, with a slightly recovered after a 9% collision raised the price to $2.70 at a low in the day over the past 24 hours. Despite the bounce, market signals suggest caution in the short term.
If an indicator occurs, XRP will rarely regain $2.85 as solid support anytime soon. Instead, the price could go back to $2.75, which could serve as the true foundation of the reversal. Keeping this support is important for buyers to reassert control.
If the broader market conditions improved, XRP could have pushed higher, recovering $2.85 in support and testing $2.94 in the short term. However, long-term bearish pressure remains. This means investors could still face volatility before sustained gatherings emerge.
