XRP - Perhaps it's time to take a break
XRP has always been one of those love/hate relationship coins that does nothing for sometime and then suddenly goes on a parabolic run. It's also one of the coins commonly known to any newcomer to the stay. It's almost like the go to coin by default. Which makes it a nice gauge of whether new money is entering into the space.
After staying below $0.63 USD for around a month, XRP finally broke to the upside decisively with nice impulse wave.
The strong price action (Higher Highs, Higher Lows and with strong volume) is setting up for further uptrend continuation. However, it's likely that it'll need to take a breather following such a strong impulse move and for profits to be trickled down to Mid to Low caps accordingly.
XRP's MVRV 30D (measures shows the average profit or loss of those holding XRP tokens which moved in the last 30 days, based on the price when each token last moved. ) has hit an all time high for the past 1 year.
This signals that XRP's currently in a way overvalued zone and there's high incentive for people to take profits off the table. Anyone buying here is just asking to be rekt.
If previous MVRV 30D behavior remains true, then we should see a bleed out over the coming weeks.
The amount of XRP mentions been growing strongly throughout the past one year and usually coincides with a rally. The only exception was when SEC announced their lawsuit against XRP back in December 2020, which provided a pretty good entry point for those willing to brave through the FUD.
Since then, Ripple's been taking steps towards dismissing the case altogether and the market is responding accordingly.
Once they are able to remove all uncertainty around XRP, it'll provide the market another greenlight to keep moving it upwards. Until then, it's time to chill.
Thanks for reading!
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