XRP Stuck Between $2.00 and $2.20 as Network Activity Hits 3-Month Low

Core Insights - XRP is currently experiencing tight consolidation, remaining in a rangebound pattern for several days, which has attracted attention from traders but has not resulted in significant market participation or price movement [1] Network Activity - The number of active addresses on the XRP Ledger has decreased significantly to 35,931, marking the lowest level in over three months, indicating reduced investor engagement and transaction activity on the network [2] - This decline in network activity suggests that XRP is struggling to generate momentum, which is essential for a sustainable recovery [3] Market Valuation - The NVT ratio has surged to a two-week high, indicating that XRP may be overvalued relative to its transaction volume, creating a bearish outlook due to subdued on-chain activity [4] - The current imbalance suggests that investors might be overly optimistic about the network's fundamentals, which do not support such valuations [5] Price Movement - XRP is trading at $2.08, maintaining a position above the critical support level of $2.02, but has been stuck between $2.20 and $2.02, reflecting a lack of directional conviction [6] - The $2.00 zone is identified as a critical psychological and structural support level, and unless buyer interest strengthens, XRP is likely to remain capped below $2.20 [7] - If market conditions worsen and XRP loses both the $2.02 and $2.00 support levels, it could lead to a price drop below $1.94, exposing XRP to further losses [8]