Ripple: THESE overvaluation signs demand XRP traders’ attention – Why?
By: bitcoin ethereum news|2025/05/16 10:15:06
0
Share
XRP dropped 4.74% to $2.47 after facing resistance at the $2.66 Fibonacci level. NVT spike and MVRV stagnation reveal valuation risks despite bullish crowd sentiment. Since early May, Ripple [XRP] has drawn increased investor optimism as both crowd and smart money sentiment indicators have turned bullish. This change aligns with a steady uptrend that pushed prices close to the $2.54–$2.66 resistance range. At press time, XRP traded at $2.47, down 4.74% in the last 24 hours. Still, both technical and on-chain data offer signals worth watching. However, whether this momentum sustains hinges on how XRP reacts to its current resistance levels. Supply shrinks as valuation risks emerge from... XRP’s Exchange Reserve dropped by 3.22%, totaling $7.28 billion. This decline implies a reduced supply of tokens available for immediate selling, which typically supports bullish market conditions. When fewer coins remain on exchanges, the likelihood of intense sell-offs diminishes. Therefore, this trend may reflect long-term holder confidence and accumulation. Source: CryptoQuant However, the NVT Ratio spiked to 2,806—an unusually high level. This indicates a sharp divergence between market cap and actual transaction activity, which often precedes local tops. Consequently, this could signal overvaluation and a possible short-term correction if on-chain activity fails to pick up. Short-term holders begin booking profits XRP’s Development Activity rose to 20.21, indicating renewed technical focus behind the project. This rebound could suggest upcoming feature rollouts or protocol improvements, often interpreted as a long-term bullish sign. Sustained development not only fosters ecosystem growth but also attracts investor confidence. However, the impact of this trend on near-term price movement depends on whether technical upgrades align with market demand and adoption narratives within the crypto space. Source: Santiment In contrast, Spent Output for 1- to 7-day-old coins dipped to 12.22 million, indicating reduced short-term selling pressure. This cooling off of activity suggests holders are holding through volatility rather than exiting, a possible sign of trust in further upside. However, traders should watch for any reversal in this trend, especially near resistance levels. Technical indicators show mixed signals Ripple’s (XRP) price tested and briefly rejected the 0.786 Fibonacci level at $2.66 before falling back below $2.5. The MACD still shows a bullish crossover, but momentum appears to be weakening as the signal line approaches convergence. Additionally, strong resistance looms at $3.00, a level previously tested and rejected earlier in the year. Therefore, despite recent upside momentum, technicals point to indecision as bulls face critical overhead resistance that could shape the next move. Source: TradingView XRP’s MVRV Ratio has recovered to 253.11% after dipping in early April. Although the figure suggests holders are in profit, it still remains well below peaks seen in previous months. This moderate rebound indicates reduced pressure from unrealized profits, potentially lowering the risk of immediate sell-offs. However, if the price continues to rise without meaningful changes in on-chain utility, the MVRV could quickly return to danger zones. Can XRP sustain bullish sentiment despite conflicting signals? Although XRP’s sentiment has turned bullish, its sustainability remains in question. Declining exchange reserves and rising development activity support the bullish case, but overvaluation signals from the NVT and MVRV ratios suggest caution. With short-term holders holding back and technical momentum slowing, XRP needs a strong breakout above $2.66 to confirm continuation. Until then, the current uptrend faces critical tests from both the charts and the chain. Source: https://ambcrypto.com/ripple-these-overvaluation-signs-demand-xrp-traders-attention-why/
You may also like

How xBubble Breaks the Deadlock in VC's Heavy Investment in the OPC Economy
DAPPOS launched xBubble, using the innovative model of "SOP is business" to solve the challenges of implementing AI Coding, allowing OPCs who do not understand technology to create a real business closed loop with zero threshold.

Dragonfly partner Haseeb: The fastest-growing companies in the future may all be stuck at 149 people
The pricing of large models is actually an "AI tax": it shackles large enterprises with computing power constraints, slows down automation, but turns subscriptions into a subsidy for small teams' innovative dividends. By capping the scale at under 149 people, startups can continuously experiment wit...

Morning Report | Former Ethereum Foundation researcher establishes Ethlabs; EU Parliament Economic Committee passes digital euro regulatory proposal
Overview of Important Market Events on June 23

Interview with NDV Founder Jason Huang: Popping the AI Bubble and the Myth of Microstrategy, Seeking the Ultimate Ace in the Crypto Market
Exclusive Interview with NDV Founder Jason Huang: MicroStrategy's coin selling triggered a stampede, BTC has fallen into a liquidity squeeze, and the current market has not yet bottomed out, patiently waiting for a "FTX-level" iconic panic event to clear.

Morning Report | The South Korean Financial Services Commission plans to expand the regulatory sandbox to include virtual assets; the parent company of the New York Stock Exchange, ICE, has reached a partnership with OKX to jointly establish a cryptocu...
Overview of Important Market Events on June 22

Exclusive Interview with Strategy CEO: Putting Aside the Sale of 32 BTC, the 60 Trillion AI Intelligence is the Ultimate Fate of Bitcoin
Strategy CEO responds for the first time to the controversy over the sale of 32 bitcoins: testing internal processes and breaking the "death spiral" rhetoric, maintaining long-term holding faith, and revealing how the 60 trillion AI intelligence will reshape the bitcoin trading landscape.

TRON revitalizes the image of the bull, creating a more approachable brand character
From Logo to BoNiu, TRON further enhances its brand visual assets.

Will the STRC issuance price discussed with ChatGPT really fall into a death spiral?
Whether this mechanism is a "stabilizer" or an "accelerator" lies in the upcoming prices and interest rates.

The foundation retreats, Ethlabs steps forward: Ethereum welcomes its largest restructuring in history
The Ethereum Foundation is repositioning itself as a lighter protocol governance and maintainer, rather than a primary core builder.

NYSE Parent ICE and OKX Launch Joint Venture: What It Means for Tokenized Stocks
ICE and OKX have announced a joint venture focused on tokenized stocks, but stock futures are already live across crypto markets. Here's what the partnership means, how stock futures work, and why traders are paying attention.
How to Trade Apple and Nvidia on a Crypto Exchange in 2026 (Without Buying Shares)
What are Apple and Nvidia stock futures, and why are crypto traders paying attention? Learn how to trade stock futures with USDT, how they differ from buying stocks, and why platforms like WEEX are expanding beyond Bitcoin in 2026.

Morning Report | Secret Network loses $4.67 million due to cross-chain vulnerability; Michael Saylor releases Bitcoin Tracker information again, may disclose increased holdings data next week
Overview of Important Market Events on June 21

Kalshi's biggest competitor is not Polymarket
The competitive logic of the prediction market has changed.

The second half of the computing power battle: Intel CEO Pat Gelsinger reveals how AI is reshaping the global semiconductor supply chain
Intel CEO Pat Gelsinger's latest discussion: The AI computing power battle has gone beyond the single-point competition of GPUs; the ultimate trump card is to comprehensively restructure the semiconductor supply chain and solve the systemic bottlenecks in advanced manufacturing.

B.AI partners with MiniMax to launch a limited-time free experience of M3, enabling zero-threshold implementation of Agentic productivity through full-stack infrastructure
B.AI and MiniMax launch a limited-time free offer for M3, allowing access to top-tier large model core computing power with no threshold.

A company that was on the verge of bankruptcy has just surpassed Bitcoin in market value
In this wave of AI, capital is clearly more inclined to pay a premium for segments that have real orders, visible supply bottlenecks, and quantifiable profits, which also puts the Crypto AI narrative under more direct scrutiny regarding the certainty of value realization.

The two giants are racing in "credit": loan balances of 9.9 billion vs 14.6 billion USD, Brazil has become the main battlefield
When we see the domestic credit market growing slowly, with major lending platforms and consumer finance companies tightening their strategies and cautiously controlling their volumes; in stark contrast, the overseas credit sector is迎来 a period of rapid expansion.

Rented Belief: How Much of the Bitcoin ETF Fund Flow is Real Money
Looking at it week by week, the ETF capital flow is mainly driven by a hidden arbitrage trade rather than belief.
How xBubble Breaks the Deadlock in VC's Heavy Investment in the OPC Economy
DAPPOS launched xBubble, using the innovative model of "SOP is business" to solve the challenges of implementing AI Coding, allowing OPCs who do not understand technology to create a real business closed loop with zero threshold.
Dragonfly partner Haseeb: The fastest-growing companies in the future may all be stuck at 149 people
The pricing of large models is actually an "AI tax": it shackles large enterprises with computing power constraints, slows down automation, but turns subscriptions into a subsidy for small teams' innovative dividends. By capping the scale at under 149 people, startups can continuously experiment wit...
Morning Report | Former Ethereum Foundation researcher establishes Ethlabs; EU Parliament Economic Committee passes digital euro regulatory proposal
Overview of Important Market Events on June 23
Interview with NDV Founder Jason Huang: Popping the AI Bubble and the Myth of Microstrategy, Seeking the Ultimate Ace in the Crypto Market
Exclusive Interview with NDV Founder Jason Huang: MicroStrategy's coin selling triggered a stampede, BTC has fallen into a liquidity squeeze, and the current market has not yet bottomed out, patiently waiting for a "FTX-level" iconic panic event to clear.
Morning Report | The South Korean Financial Services Commission plans to expand the regulatory sandbox to include virtual assets; the parent company of the New York Stock Exchange, ICE, has reached a partnership with OKX to jointly establish a cryptocu...
Overview of Important Market Events on June 22
Exclusive Interview with Strategy CEO: Putting Aside the Sale of 32 BTC, the 60 Trillion AI Intelligence is the Ultimate Fate of Bitcoin
Strategy CEO responds for the first time to the controversy over the sale of 32 bitcoins: testing internal processes and breaking the "death spiral" rhetoric, maintaining long-term holding faith, and revealing how the 60 trillion AI intelligence will reshape the bitcoin trading landscape.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com
