XRP Price Nears Correction as Signs of Overvaluation Emerge

Updated

October 24, 2025

Gambar XRP Price Nears Correction as Signs of Overvaluation Emerge

Jakarta, Pintu News – XRP has not shown any significant recovery in recent days, despite the general market trying to stabilize. The altcoin’s recent movements show increasingly clear signs of weakness, with momentum starting to weaken, while on-chain data indicates a possible overvaluation.

With the selling signals getting stronger, XRP is likely to face more downward pressure in the upcoming trading sessions.

XRP Price: Alarming Actions from XRP Holders

The Network Value to Transactions (NVT) ratio for XRP saw a sharp spike, indicating that the recent small price increase is not supported by any real transaction activity.

This mismatch between valuation and network utility signals the growing dominance of hype-driven trading behavior, rather than fundamental network growth. Historically, this has often been a sign of a short-term correction.

A rise in the NVT Ratio generally indicates overvaluation, as the market capitalization is growing faster than the actual usage of the blockchain. In the case of XRP, this pattern indicates that traders’ enthusiasm is outpacing organic demand for the network.

On the macro side, XRP’s Liveliness metric-which measures the activity of long-term holders (LTH)-experienced a significant increase. This spike reflects the start of movement in previously dormant coins, suggesting that long-term investors are starting to sell their holdings.

This trend suggests a change in sentiment from holders who may be starting to lose patience amid stagnant price movements.

The lack of sustained growth seems to be encouraging LTHs to secure profits before potential price declines occur. When experienced holders start distributing their assets, it often signals reduced confidence in the short-term profit potential.

XRP Price Trapped in Narrow Range

As of October 23, XRP was trading at $2.41, slightly above the $2.35 support level but still stuck below the $2.54 resistance. Market volatility has begun to narrow, but momentum indicators continue to show bearish tendencies as selling pressure increases across exchanges.

Given these conditions, XRP is at risk of a short-term correction if market weakness persists. A drop below the $2.35 support could push the price down to around $2.27, potentially even falling deeper to $2.13. This movement would further strengthen the negative sentiment in the market.

However, if investor interest increases and buying activity picks up again, XRP has a chance to bounce back from current levels. If the price manages to break the $2.54 resistance, a path towards $2.64 could open up, invalidating the bearish scenario and signaling renewed optimism in the market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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