The post XRP Price Analysis: Potential Drop to $0.46 Amid Network Struggles and Profit-Taking appeared on BitcoinEthereumNews.com.

XRP has shown significant movement, reaching $0.46 amidst rising realized profits. Potential downtrend concerns arise if network activity does not pick up. Interestingly, XRP recorded the highest daily on-chain transaction volumes in profit since 26 May, based on realized profit metrics. Explore the recent surge and potential roadblocks for XRP, as it teeters between profit-taking and network growth challenges. Sharp Price Increase Linked to Profit-Taking XRP’s recent price surge saw it touch $0.48 on 28 June before retreating slightly to $0.47. This spike in value was accompanied by increased profit-taking activities among investors. While beneficial for individual holders, this trend might hinder further price appreciation in the short term. Historical data suggests that frequent spikes in profit-taking are usually followed by a dip in price, possibly bringing XRP back down to near $0.46. Analyzing Market Value and Realized Value Metrics Examining the Market Value to Realized Value (MVRV) ratio offers deeper insights into XRP’s market dynamics. Currently, the 30-day MVRV ratio for XRP stands at -5.45%, indicating that the average holder is in a loss position. Typically, ranges between -8.59% and -18.63% represent prime buying opportunities, suggesting that XRP might decline further before staging a recovery. However, a broader altcoin rally could invalidate this prediction, pushing XRP to retest $0.48 or even climb to $0.50 in highly bullish conditions. Potential Downswing and Network Growth Concerns Historically, positive buying windows emerge when the MVRV ratio falls into deeper negative territories. Given that the current ratio remains above critical levels, the prediction for a near-term decline to $0.46 seems plausible. However, this outlook can change if altcoins collectively embark on a bullish run. Additionally, XRP’s Network Growth, which tracks new addresses and overall network traction, has been on a downturn. A sustained decline in this metric can impede any meaningful price recovery,…

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Filed under: News - @ June 29, 2024 2:10 pm