XRP News Today: XRP Whale Transfer Sparks Concerns Amid 39.47% NVT Surge

On 16 July, a significant transaction involving 25.5 million XRP tokens, valued at $73.6 million, was transferred from an unknown wallet to Coinbase. This movement coincided with a daily net outflow of $9.69 million from spot markets, continuing XRP’s trend of exchange outflows. The scale of this activity suggests either investor fear or profit-taking by large holders. Historically, similar whale transfers to exchanges have preceded short-term price dips, raising concerns about potential additional sell-offs as XRP approaches a key resistance zone on the charts.

The Network Value to Transactions (NVT) ratio for XRP surged by 39.47% in 24 hours, reaching 127.95. This metric, which compares market cap to transaction volume, is often used as a valuation gauge. A rapid spike in NVT may imply that network usage is lagging behind price action, signaling speculative trading activity rather than organic utility growth. Investors should monitor this trend closely, as historically high NVT values often precede corrections or periods of consolidation.

Data from Binance revealed that 80.86% of XRP traders were positioned in longs, resulting in a long/short ratio of 4.22. This sharp imbalance highlights heightened bullish conviction among traders. However, such optimism carries risk, especially if price momentum stalls. Overcrowded long trades can lead to sharp liquidations, amplifying downside pressure. While bullish dominance often fuels rallies, it also reflects a market that may be over-leveraged, requiring cautious optimism in the face of rising volatility.

The OI-weighted funding rate for XRP jumped to +0.0186%, the highest level recorded in months. This sharp uptick indicates that long traders have been paying increasingly high premiums to maintain their positions. Such funding spikes are often seen when sentiment becomes overly bullish, reinforcing market conviction but also raising the probability of abrupt corrections should the bullish momentum fade. XRP may face a critical test soon—either sustain its upward thrust or risk a swift retracement driven by cascading liquidations.

At the time of writing, XRP was trading at $2.95, approaching the $3.03 resistance level that previously triggered sharp rejections. However, the RSI reading had already crossed into overbought territory at 80.67, raising the risk of exhaustion. If momentum fails to strengthen, XRP could retrace to test the support zones around $2.71 or $2.58. On the flip side, a strong push above $3.03 could open the path towards higher highs. The outcome will likely depend on volume support and broader market sentiment.

In conclusion, XRP’s bullish momentum has been strong, supported by high long positions and rising funding rates. However, the sharp spike in NVT and overbought RSI hint at a potential correction in the short term. The $3.03 resistance level stands as a critical hurdle. If buying pressure persists, XRP may break higher, but over-leveraged conditions mean caution may be warranted. Traders should watch for confirmation before positioning, as both breakout and pullback scenarios remain on the table.