XRP Price Up, But Metrics Say “Caution”

XRP Price- Falling Wedge Holds XRP Below Breakout Zone

XRP Price– Ripple’s native token, XRP, saw a notable daily gain of 11.49% to trade at $1.99. However, the rally has yet to translate into a meaningful breakout, as the token remains trapped within a multi-month falling wedge pattern.

Key support levels at $1.67 and $1.39 have helped stabilize XRP, but the token continues to face heavy resistance at $2.04 and $2.38. Its recent attempt to push through $2.04 was rejected, aligning with the upper boundary of the wedge.

As analysts note, “long upper wicks on candlesticks near resistance levels reflect significant selling pressure,” limiting bullish momentum. A sustained daily close above $2.04 is needed to challenge this structure—until then, XRP’s trend remains bearish.

On-Chain Metrics Undermine Bullish Momentum

While the price has surged, on-chain activity tells a different story. Daily Active Addresses (DAA) have diverged from price, showing a -273% discrepancy. This suggests that user engagement is not supporting the rally.

“This kind of divergence often indicates speculation is driving price rather than organic network demand,” a common red flag in prior market corrections.

The Network Value to Transaction (NVT) ratio has climbed to 474.93, signaling that XRP’s valuation may be outpacing its real-world usage. Historically, such spikes have preceded market pullbacks.

Unless user activity and transaction volume increase meaningfully, XRP’s recent price action could lose momentum. Traders and observers are advised to monitor these key metrics closely—not as investment advice, but as insight into market structure and sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.