XRP News Today: XRP Drops 3.31% After Reaching $2.65 Local High

XRP, the cryptocurrency associated with Ripple, has experienced a slight retracement after reaching a local high of $2.65. The altcoin has declined for two consecutive days, hitting a low of $2.49. At the time of reporting, XRP was trading at $2.50, reflecting a 3.31% decrease on the daily chart.

Crypto analyst Man of Bitcoin suggested that XRP may have already reached a local top, citing the Elliott Wave structure. According to the analyst, if XRP breaks below the descending trend line, it would indicate the start of a correction. The current support for the corrective wave 2 is building, with a support zone between $2.19 and $1.79. The key validation level for downside continuation is $2.33.

The recent rally in XRP's price was not backed by actual demand but rather by speculative buying, according to analysis. The Price–DAA Divergence for XRP has remained negative throughout the past week, despite the price rally. This negative divergence creates a bearish signal, indicating unsustainable price movement not supported by a growing user base. Such a mismatch leads to lower prices.

Adding to the demand concerns, XRP’s NVT Ratio spiked from 99 to 207, signaling that valuation outpaced transaction volume. A rising NVT ratio implies that the recent price uptrend was not backed by strong demand, which usually leads to price correction. Although XRP prices are not currently supported by a growing user base, the altcoin’s MVRV suggests that a top is unlikely and the retrace will not result in strong losses. At 2.9 MVRV, XRP remains in a neutral zone. Historically, a local top has occurred around 3.2 while a market top has emerged above 3.5.

The recent decline in XRP’s price appears to be primarily driven by a broader market pullback. According to analyst Man of Bitcoin, a drop to $2.19 seems unlikely at this stage. If the downward trend persists, XRP may see a pullback to around $2.34 before possibly making another upward move. Conversely, if the retracement is influenced by the overall market sentiment, we could witness a rebound that allows XRP to reclaim the $2.56 level.