The excessive value of XRP strikes the highest level in 5 years, and the price is likely to have an effect

XRP recently faces a decline, with Altcoin decreased without main support levels. However, it seems that he created a bullish style that seemed ready to break.

However, the XRP evaluation made this penetration unlikely. As Altcoin prices rise, concerns about their sustainability are escalating.

XRP is very exaggerated

This week, the value of the XRP network to transport (NVT) has increased to the highest level of five years, indicating an excessive estimate. The ratio of NVT is a decisive indicator that compares the market value of the cryptocurrency to the size of its transactions. When the NVT ratio increases sharply, it indicates that the value of the network exceeds the actual treatment activity.

This condition has been historically associated with an upcoming price correction. The last time the NVT ratio reached similar levels in January 2020, before XRP suffers from a large shrinkage. The increase in NVT indicates that the market has become feverish, with slowdown expectations.

Although XRP 22 % in the past two weeks, technical indicators have a more important image. The Chaikin Money Flow (CMF) indicated a significant increase, which often indicates that the money flows to the market. However, a closer look at the volume of flows reveals that the large purchase activity did not support the increase in prices.

Instead, noise and speculation push prices more than the benefit of the original investor.

With this in mind, the XRP Rally may be more homosexual in the short term rather than a sustainable upward trend. With the market calming and the noise decline, Altcoin is likely to maintain the last price levels. The excessive value state is still a great danger, which may lead to the correction of prices.

The XRP price faces the homosexual sermon

XRP is currently trading at $ 2.19, indicating an increase of 22 % in the last two weeks. Altcoin appears to be preparing to penetrate from a three -month -old channel. However, this penetration faces challenges, as the excessive value and the broader market indicators indicate that the assembly may not last.

Looking at potential declining factors, even if XRP can get out, the gathering can be short -term. The price can decrease to $ 2.02, or perhaps less to $ 1.94, if the penetration fails to keep it. A mixture of excessive value and momentum in the weak purchase can reflect any gains quickly.

On the other hand, if XRP is able to keep it out, as it secures $ 2.40 and $ 2.56 as support levels can provide the necessary basis for more price growth. Such a step will nullify the downward view, allowing XRP to push up and continue its ascension.