XRP’s price is showing significant signs of weakness this October 23rd. The altcoin is trading at $2.41, struggling to overcome resistance at $2.54 as its bullish momentum fades. On-chain data from the analytics platform Glassnode reveals a growing XRP correction risk. These warnings are fueled by clear signals of overvaluation and a notable lack of fundamental network activity.
The blockchain analysis indicates a worrying divergence for the asset. XRP’s NVT (Network Value to Transactions) Ratio has risen sharply. This key indicator compares market capitalization to actual transaction volume. A high NVT, like the current one, suggests that the slight price increases are not backed by real transactional activity. In essence, the market value is far outpacing the actual use of the network.
This behavior is often driven purely by speculation or hype among traders, rather than fundamental growth. Historically, when these valuation bubbles form without a solid foundation of utility, the XRP correction risk increases significantly. Analysts at Glassnode note that this pattern has preceded short-term price drops in previous cycles.
Meanwhile, another key metric, “Liveliness,” shows a notable uptick. This indicator is crucial because it measures the activity of long-term holders (LTHs), often considered the “strong hands” of the market. A rise in Liveliness suggests that older investors are selling. This means that coins that had been dormant for a long time are starting to move, likely to exchanges for sale.
This movement implies a dangerous reduction in confidence among the most experienced investors. LTHs seem to be losing patience with XRP’s stagnant price action. Therefore, they are deciding to secure profits before a potential decline. When long-term holders begin to distribute their assets, it is often a sign of low conviction in short-term gains.
Will XRP Lose the Critical $2.35 Support?
The technical analysis of the price chart, according to data from TradingView, places XRP in a visibly delicate position. The asset is struggling to hold just above the key support level of $2.35. However, market volatility has narrowed, and momentum indicators are leaning bearish. Selling pressure appears to be building on major exchanges.
If sellers manage to win this battle and break the $2.35 support level, the XRP correction risk would materialize imminently. The cryptocurrency could quickly fall towards the next psychological support at $2.27. If selling panic intensifies, a deeper drop to $2.13 is a plausible scenario.
Nevertheless, the bearish scenario is not yet fully confirmed, and buyers could intervene. If buyer demand returns strongly at current levels, XRP could defend the support and rebound. The immediate challenge for bulls is to reclaim the critical $2.54 resistance.
Surpassing this level with conviction would invalidate the short-term corrective outlook. Furthermore, a successful break of $2.54 would open the path for a potential recovery. The next bullish target would be in the $2.64 zone, which could renew optimism in the altcoin’s market.
