Key Insights
XRP faced a critical price support at $2.81, with various indicators signaling potential risks. The NVT ratio surged by 441%, Spot Taker CVD showed dominance in selling, and liquidation heatmaps highlighted vulnerabilities near $2.80.
Ripple [XRP] tested its resilience once again as it approached the crucial on-chain support at $2.81, a level known for attracting significant buying activity.
Currently, the altcoin is trading at $2.8169, with a 1.58% decline in the last 24 hours. Traders are closely monitoring whether this support level can prevent further losses.
Technical analysis suggests a descending channel formation that could accelerate bearish momentum if breached.
Will XRP bulls defend the $2.81 support zone?
XRP’s structure indicates an extended consolidation within a descending channel, with Fibonacci retracement levels serving as crucial reference points.
The 0.618 retracement is positioned near $2.75, while the 0.786 level aligns with $2.65, acting as strong defenses below $2.81.
If sellers manage to break through, the price could decline towards $2.52 or even the 1.618 extension at $2.15. However, a robust defense at $2.81 could pave the way for recovery, with resistance seen at $3.20.
Source: TradingView
Signs of Concern for XRP?
On-chain data reveals a spike in XRP’s Network Value to Transactions (NVT) Ratio, surging by 441% to 168 within 24 hours.
This significant increase suggests that transaction activity is not keeping up with market valuation, often indicating an overvaluation that could lead to corrections.
Historically, elevated NVT levels have preceded market corrections as risk is reassessed. However, such spikes may not always result in immediate declines, particularly during consolidation phases.
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