Title: Ripple’s XRP Token Sees 9% Price Growth in Dead Cat Bounce Amid Market Downturn
In the midst of a broader market downturn, Ripple’s XRP token has experienced a 9% price growth in the past 24 hours, signaling a typical “dead cat bounce” phenomenon. This temporary recovery comes after XRP plummeted to a 30-day low of $0.43 during Monday’s market decline.
On-chain data reveals a decline in demand for altcoins and a likelihood of XRP holders selling for profit, casting doubt on the sustainability of the recent price surge. The negative price-daily active address (DAA) divergence further indicates that the network activity does not support the rally.
With XRP’s market value to realized value (MVRV) ratio standing at 30.88, the altcoin is deemed significantly overvalued, prompting holders to potentially sell for profit. This selling pressure could prevent any significant uptrend in the short term.
If selling pressure intensifies, XRP is expected to fall below $0.50 and resume its downtrend, potentially dropping to $0.46. However, if buying activity picks up and demand supports the current rally, XRP’s price may rise to $0.52.
As the market remains volatile, investors are advised to conduct thorough research and seek professional advice before making any financial decisions. Stay informed and cautious amidst changing market conditions.
