XRP fights for a major rally all year round. Although the asset hit an annual high of $ 1.97 in April 2021, it was “broken in the middle of the road” due to SEC intervention.

Other cryptocurrencies like Bitcoin, Ethereum, and Cardano are all able to set new ATHs, but not XRP. At press time, the asset is once again floating below the psychological $ 1 mark. Additionally, there also appears to be a difference in baseline usage performance that was observed.

Low liquidity ratio

According to data from Bot Index Liquidity, some of the large Ripple ODL corridors have significantly low liquidity. The liquidity index for XRP / EUR has turned negative since the first week of September, while the XRP / AUD corridor has turned negative since July 2021.

XRP / EUR liquidity index. The source: Twitter

XRP / PHP maintains positive liquidity but has seen a significant decline. In contrast are the corridors XRP / MXN continues to maintain a higher level on the Bitso exchange.

XRP / PHP liquidity index. Source: Twitter

Now, these signs may indicate that blockchain usage of XRP has cooled down a bit. However, according to Messari’s activity chain data, the story is completely different.

XRP is one of the top 10 active chains at the time of writing, having enabled over $ 610 million in adjusted transactions in the past 24 hours. XRP ranks second after BTC, ETH, ADA and DOT.

Are there any inconsistencies in the numbers?

Source: Santiment

Currently, according to the DAA price-corrected divergence, the current market is actually showing a buy signal for XRP, as the active addresses have increased during the bearish phase.

This is a laudable bullish sign, but again there is a bearish contradiction in the MVRV indicator.

Source: Santiment

The market value to real value ratio (MVRV) seems to suggest that the losses XRP investors are taking are pretty obvious right now. In addition, a longer period of consolidation within the current price range could reinforce the downtrend.

What is currently the biggest hurdle for XRP?

Source: trade view

Structurally, the market resistance remains at $ 1.05-1.1. However, the ODL corridors need to be replenished with liquidity as this can be a fundamental driver.

In the past year we have seen a stronger recovery in many projects thanks to the utilities. For now, the statistics of the active chain of XRP must be in line with the ODL movement in order to generate sustainable profits in the future.

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Annie

According to Ambcrypto

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