XRP Ledger Booms: $44 Million In Transactions As Activity Soars
XRP has been experiencing a significant increase in on-chain activity, which has resulted in a recent surge in its popularity.
Analysts and investors have expressed interest in the XRP Ledger, Ripples digital payment platform, due to its increased transaction throughput.
CryptoQuant recently noted an increase in the NVT (Network Value to Transactions) Ratio of XRP in a post on X (formerly Twitter), which implies that on-chain activity has been increasing. This increasing NVT Ratio may indicate that the XRP network is more active than its current market valuation.
Market observers are keeping an eye on the altcoins value and activity, which of late are exhibiting a variety of signals. Despite the network usages surge, XRP price continues to encounter obstacles, with critical resistance levels imminent.
XRPL: Spike in NVT Ratio
Given that the NVT Ratio is a calculation between Market Capitalization (which is stable around $51.1B) and On-chain Transaction Volume, this spike reflects higher transaction volume. By @JA_Maartun
Read more https://t.co/11LKvfGjDQ pic.twitter.com/1tK1M95cKv
CryptoQuant.com (@cryptoquant_com) November 13, 2024
Whats The Reason For The Increase In NVT Ratio?
A measure of the value of network activity is the NVT Ratio, which is calculated by dividing market capitalization by the volume of on-chain transactions. On November 2, XRPs NVT Ratio saw a sharp rise, hitting 1,162 in a comparatively short amount of time.
This increase is primarily attributable to a surge in on-chain activity, which resulted in the network processing $44 million in daily transaction traffic, CryptoQuant data shows.
So, what does this imply? A high NVT Ratio usually suggests that the market capitalization hasnt kept pace with the increased activity in the network, even though the network is in use. With respect to XRP, it implies that the number of transactions is higher, possibly for remittance or other purposes.
This increase in activity, however, has not yet translated into an increase in the price of the token. In fact, despite the rise in activity, the market capitalization of XRP has remained relatively constant, close to $51 billion.
XRP: $0.75 Resistance In Focus
While this is going on, XRP market experts are looking at how the price of the coin changes. For almost a year now, $0.75 has been a strong resistance. A well-known crypto expert, Egrag Crypto, also saw this level as a major obstacle for the token.
#XRP at 0.75c The Key Level!
by now you are fed up from me talking about $0.75c is crucial! Lets take a look at the bigger picture :
On the monthly chart, three wicks have formed, showing big selling pressure. Heres when we saw it:A) November 2023B) March 2024C) pic.twitter.com/7X0p3Msu9E
EGRAG CRYPTO (@egragcrypto) November 13, 2024
Egrag suggests that if XRP is able to surpass $0.75, it may pursue subsequent targets at $0.85 and even $1.12, potentially triggering a rally. However, it has not been a simple featXRPs most recent endeavors to surpass this threshold in November 2023, March 2024, and this month were all met with substantial selling pressure.
Nevertheless, traders remain optimistic that the heightened network activity and support levels could provide XRP with the necessary boost, despite these setbacks.
December RallyDecember 2024 has the potential to be a transformative month for XRP. Many analysts believe that if XRP closes above $0.60 on a weekly basis, it could establish a wake-up line, which could result in increased price gains through the end of the year.
Featured image from Yahoo Finance, chart from TradingView
Read more: https://www.newsbtc.com/news/xrp-ledger-booms-44-million-in-transactions-as-activity-soars/
Text source: NewsBTC
