XRP soars 16% in 7 days: Is this why? – Crypto News – Crypto News
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XRP soars 16% in 7 days: Is this why? XRP soars 16% in 7 days: Is this why?

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XRP soars 16% in 7 days: Is this why? – Crypto News

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2 years ago

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  • XRP’s price increased by 16% in the last week as Ripple is set to kick off its Swell event.
  • With its MVRV ratio at a new high, profit-taking activity might push down XRP’s value

Ahead of the Ripple Swell event scheduled to commence on the 8th of November, XRP has posted a 16% price growth in the last week. 

Ripple Swell is a two-day event often held in November since 2017, where leading figures in the global payments industry come together to discuss a variety of topics. 

Crypto research firm ASXN noted in a recent post on X (formerly Twitter) that XRP’s value usually sees a surge leading up to the Swell conference but tends to decline afterward.

The rally in price ahead of the event is typically tied to the yearly anticipation of the significant announcements expected to be made at the gathering. 

In a post made on the 27th of October, pseudonymous X user WKahneman noted that specific announcements to be made at this year’s Swell event remain uncertain. However, there are some possibilities on the table.

These include an Initial Public Offering (IPO), the acquisition of a Virtual Assets Regulatory Authority (VARA) license, Central Bank Digital Currencies (CBDCs), stablecoin/tokenization initiatives, and more. 

Additionally, the event may shed light on whether Ripple continues to view itself primarily as a payment company.

XRP holders have a cause to smile

At press time, the altcoin traded at $0.6822, its highest price point since the 3rd of August, according to data from CoinMarketCap. 

AMBCrypto’s on-chain assessment of how profitable XRP investments showed steady growth in the token’s Market Value to Realized Value (MVRV) ratio.

An asset’s MVRV ratio tracks the ratio between that asset’s current market price and the average price of every coin or token. A positive MVRV ratio above the center line signals that an asset is overvalued.

The more this ratio increases, the more likely traders have historically demonstrated their willingness to sell for profit.

AMBCrypto discovered that at 81.73%, XRP’s press time MVRV was at its highest since the 14th of August. At that value, if every XRP holder were to sell their tokens, they would, on average, realize a profit of 81.73% on their initial investments.

Source: Santiment

However, it is pertinent to note that XRP’s MVRV at overvalued highs could be an indication of a potential price correction in the short term. 

Is your portfolio green? Check out the XRP Profit Calculator

The token’s key momentum indicators, observed on a daily chart, lent credence to this position. At press time, XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted at overbought highs of 73.64 and 80.22, respectively. 

Source: XRP/USDT on TradingView

At these levels, the buyers in the market find it difficult to sustain any further price rally. 

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