Last updated:
Author
Alejandro Arrieche
Author
Alejandro Arrieche
Share
Why Trust Cryptonews
XRP (XRP) has gone up by 2.2% in the past 24 hours to stand at $2.46 per token as the crypto market continues to recover.
However, on-chain metrics indicate that Ripple, the blockchain protocol powered by this cryptocurrency, has not been growing at a pace that justifies this recent price surge.
According to data from Glassnode, the Network Value to Transactions (NVT) ratio has spiked to its highest level since January 2020. The aggregated market cap of XRP has been expanding lately as regulatory headwinds in the United States have mostly faded.
However, network transaction volumes have not grown at the same pace. The market value of blockchain projects is heavily influenced by network growth. Hence, if growth is stalling, XRP could struggle to keep reaching higher price levels.
Also read: Ripple (XRP) Price Prediction 2025, 2026 – 2030
Ripple has recently taken steps to expand its ecosystem including the launch of its stablecoin Ripple USD (RLUSD).
In addition, the firm has strengthened its presence in the Middle East and has already secured key licenses to operate as a payments provider in top locations like Dubai.
XRP Rallied by 590% the Last Time the NVT Rose to This Level
Although this metric could be interpreted as a bearish signal, the performance of XRP back in 2021 seems to indicate the opposite. From January 2021 to May 2021, XRP delivered gains of 590%.
The NVT ratio’s expansion at that time occurred in the midst of a bull market. If XRP experiences a similar increase at this point, this means that the price could rise above the $15 level.
At that time, this rally unfolded in a period of just 5 months. Will history repeat?
In the past few months, Ripple has found strong support between the $1.7 and $1.9 levels. Momentum indicators have been improving although the price action seems to have entered a period of consolidation.
To fully reverse its downtrend, XRP would have to rise above $2.65 per token in the next few days. The Relative Strength Index (RSI) sent a sell signal on March 13 and has stood above its 14-day simple moving average (SMA) since then. Meanwhile, the MACD’s histogram shows steadily rising positive momentum readings.
XRP’s prospects are promising as this NVT ratio could signal an upcoming rally. Meanwhile, the best crypto presales like Solaxy ($SOLX), a layer-two Solana scaling solution, are also offering significant upside to early buyers.
Solaxy ($SOLX) Raises $27M to Alleviate Solana’s Congestion Issues
Back in January when Official Trump ($TRUMP) and Melania Meme Coin ($MELANIA) were launched, the Solana blockchain experienced delays and delivered transaction errors as transaction volumes spiked.
Solaxy ($SOLX) fixes this by introducing a layer-two protocol designed to bundle transactions offline to alleviate the mainnet’s congestion during peak usage times.
Since its presale event was launched in December last year, $SOLX has raised $27.7 million to launch its scaling solution and the developing team has already made significant progress to launch the protocol soon.
Apart from the attractive upside potential that this utility token offers as the protocol’s adoption increases, investors can stake their $SOLX tokens to earn a 147% APY on their investment.
To buy $SOLX simply head to the Solaxy website and connect your wallet (e.g. Best Wallet).
Either swap SOL, USDT, or ETH for this token or use a bank card to make your investment.
