With the top coins hitting new ATHs this year, where’s XRP?
Although the market slowed after the first week of September, 2021 turned out to be good for most of the top coins. Bitcoin, ETH and ADA all registered new ATHs this year. In contrast, XRP only hit a multi-month high of $ 1.96 in this year’s April rally, but is still nearly 50% below the ATH hit in 2018.
On the flip side, XRP rose 72% in the 2nd week of August, hitting $ 1.40 for the first time since May, but after that the altcoin made lower lows and closed the candle red on the weekly chart for 3 weeks.
In fact, for the past 10 days, XRP has struggled to crack $ 1.05 after correcting the price by about 15%.
Amid the low prices and new developments in the SEC case, Ripple Labs has made a long bet to encourage the development of NFT projects on the XRP ledger. Bitcoin Magazine reported on Sept. 29 that the company announced a $ 250 million creator fund aimed at supporting NFT projects that build on the network’s ledger. Once again, hopes of a rally from XRP to $ 1.50 were raised.
Participants remain optimistic about profit
If prices continue to fall, overall market participation is expected to be low. However, at the time of writing, XRP has had its highest number of active addresses since late March. While an increase in the number of active addresses is a sign of more active on-chain activity, the decrease in speed is cause for concern as the indicator is currently at an all-time low.
Number of active addresses (pink) | The source: Sanbase
Speed is a measure of how fast coins circulate in the network and the ratio of the transaction volume in the chain (in USD) to market capitalization. Although speed is not a price indicator, it does measure the “liveliness” of the network.
The speed of XRP at the time of writing is down about 60% in just a day. This means that if the volume is low, the price can struggle in the short term.
The price is recovering, but the inflow of money is hindering
Notably, XRP’s 30-day MVRV rebounded from the local low on September 21, when the price fluctuated around $ 0.87. While this is a sign of rebound as the price has risen nearly 8% afterwards, XRP’s stagnant trading volume is another worrying trend.
Additionally, the Relative Strength Index for XRP on the daily chart has risen slightly, indicating increased inflows, which seems like a good sign. However, a look at XRP’s weekly chart reveals two bearish closing candles.
It looks like XRP’s tug-of-war will take a little longer before another new local top can be seen.
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