The XRP NVT ratio indicates the next main price movement
LEDGER XRP flashing a possible warning to merchants and investors. The NVT ratio increased above 280, according to New Cryptoquant Data.
This jump may indicate that the price of XRP rises faster than its actual use on the network, which may indicate that the original is exaggerated.
NVT (the value of the network for transactions) is the percentage of the market value of the cryptocurrency to the number of daily transactions on its network. The high NVT percentage includes a decrease in the flow of symbols across the market. This is often explained as a sign that noise exceeds the basics.
On June 19, data from Cryptoquant showed a severe increase in the NVT ratio of XRP. At the same time, the price of XRP remained relatively stable about $ 2.167.
For short -term traders, this may mean that price correction is more likely when trading volume fails. In the long run, investors may consider that this is an opportunity to reassess risk exposure.
NVT is very high not necessarily bullish. In some cases, it may simply indicate that the market expects to grow or upcoming developments that have not yet been achieved on the series.
However, in the absence of great underlying reasons, the sudden NVT height is a clear sign that the demand for the network is behind the price measures.
XRP price down
In recent weeks, interest in XRP has increased due to the regeneration of optimism about the possible ETF approval XRP. This may be the time for traders to pay more close attention to both market size and morale, and monitor the main price levels.
If NVT remains high without a similar increase in the network activity, the low pressure on the price may be practiced, causing it to decrease.
On the contrary, if the use begins to catch the knees, XRP can stabilize and resume its upward path.
Currently, the price of XRP is $ 2.13, which reflects a modest decrease of 1.44 % over the past 24 hours. The trading volume increased by 37.34 % during the same period, reaching $ 2.59 billion.
Some traders may see the recent decline as an opportunity to buy, especially given the possibility of a frequent price recovery from the high trading volume.