XRP Price Slides as Overvaluation Shape Market Outlook

Recent data suggests the token might be overvalued. XRP’s Network Value to Transactions (NVT) Ratio has hit its highest point in a month. A high NVT ratio often signals that market value is rising faster than real usage, pointing to a likely correction.

Still, not all signals are bearish. Long-term XRP holders appear to be accumulating, as shown by a falling Liveliness indicator. This metric drops when holders keep their tokens rather than sell them. It signals strong belief in the token’s future.

These investors are stepping in to stabilize the market. By absorbing the selling pressure, they are trying to lay the groundwork for a rebound.

If XRP holds the $2.27 level and gains enough buyer interest, it may bounce back. A move past $2.38 could then push the price toward $2.56, restoring some investor confidence.

But if support fails, the downward trend may continue. A drop to $2.12 would signal more pain for traders and add to the bearish outlook.

For now, XRP sits at a critical point, with both bulls and bears watching closely for the next move.