Key Takeaways
XRP’s NVT Ratio dropped 38.71%, signaling potential undervaluation amid rising network activity. Over 72% of traders on Binance are long on XRP, reflecting renewed bullish sentiment.
XRP has plunged from over 30% to under 5%, reflecting its declining influence, despite prices showing signs of renewed interest within the broader crypto landscape.
Despite this, the asset has recently seen renewed interest as macro conditions improve and regulatory clarity strengthens.
This collapse in dominance doesn’t imply the end—rather, it may represent room for capital rotation and upside potential.
On-chain data and trading metrics hint at a possible shift in sentiment that could spark a price resurgence. As dominance sits at multi-year lows, XRP’s next move could surprise the market.
The spark that XRP bulls are waiting for
The Network Value to Transactions (NVT) Ratio for XRP nosedived by 38.71% over the past 24 hours to 173, signaling an emerging bullish divergence.
A declining NVT typically indicates rising transaction volume relative to market cap—implying undervaluation.
This steep drop reflects rising on-chain utility not yet priced into XRP. Historically, such sharp corrections in NVT precede upward price movement, especially when fundamentals are improving.
This metric reinforces the possibility that XRP’s price may soon align with its network growth, creating favorable conditions for bullish continuation.
Source: CryptoQuant
Another rally attempt
XRP recently retested the $2.75 support after failing to hold above the $3.55 resistance. Price bounced firmly, and the Parabolic SAR has now shifted above the candles, suggesting consolidation.
Moreover, the MACD started showing signs of convergence, hinting at easing bearish momentum. If buyers defend this support level, it could act as a launchpad for another rally toward the $3.55 resistance zone.
However, any weakness at $2.75 could open the door for a drop to the $1.96 level. Therefore, this bounce is critical for XRP’s short-term direction.
Source: TradingView
Why are over 72% of traders leaning bullish?
As of the 5th of August, 72.45% of Binance XRPUSDT traders held long positions, pushing the Long/Short Ratio to 2.63.
This shift reflected growing bullish conviction among retail and short-term traders, particularly after the asset bounced from support.
Since mid-July, the ratio has steadily increased, showing sustained confidence despite price retracements.
If market conditions remain favorable, this build-up of long exposure could act as fuel for an upward breakout. However, crowded longs near resistance levels could also risk rapid liquidations if momentum falters.
Source: CoinGlass
Are liquidation clusters a barrier?
The Binance liquidation heatmap shows heavy liquidation clusters between $3.1 and $3.2—zones where traders have historically placed leveraged short positions.
These levels often act as near-term resistance, as market makers hunt for liquidity.
XRP price recently stalled just under this band, suggesting that breakout attempts face strong overhead pressure. However, if bulls manage to clear these clusters, a quick rally to $3.55 could follow.
Therefore, these liquidation pockets are key battlegrounds that could define the next price leg.
Source: CoinGlass
Is XRP gearing up for a major comeback?
XRP’s suppressed dominance, falling NVT Ratio, bullish price structure, and favorable Long/Short positioning hinted at a possible breakout ahead.
However, strong resistance near $3.2 and $3.55 must be cleared decisively. If bulls maintain control, XRP price could reclaim not only key price levels but also its standing in the broader market.