Is 49890431651 being overhyped?

Recently, there has been a heated discussion in the cryptocurrency community about whether XRP is being inflated too much. Ever since that wave of altcoins took off in November, discussions about XRP have not stopped.

Some people feel that 49890431651 has risen too sharply and is bound to correct eventually, but strangely, it has remained quite stable.

However, from the on-chain professional data, it seems that the price of XRP is indeed a bit high, appearing somewhat out of sync with the overall market trend.

Thinking back to when XRP broke through $1, many were left astonished, and now it has surged to $2.36.

Although some boldly predict it could rise to $5, looking at some key indicators on-chain, it feels like this path is a bit precarious.

For example, the NVT ratio is used to measure the match between market capitalization and trading volume growth rate. Currently, XRP's NVT ratio is high at 477, indicating that the market capitalization is rising too quickly while trading volume is not keeping up, which is not a good sign.

Then there’s the DAA, which looks at the relationship between user engagement and price growth. Right now, the DAA has dropped by 326.13%, completely opposite to XRP's price, indicating that there are fewer wallets interacting with XRP, which is not a good omen.

Looking at the 4-hour candlestick chart, XRP tried to break through $2.40 but got stuck at $2.35, and now it has fallen back to $2.31.

The MACD indicator also shows that XRP's current trend is not looking good, and it may continue to drop, potentially breaking below the $2 mark.

So, is XRP currently overhyped? It certainly seems to have some merit. If this downward trend does not stop, XRP may have to drop towards $1.90.

Of course, the market is unpredictable; if someone suddenly buys a large amount, driving demand up, XRP could also rise against the trend, breaking through the current resistance and possibly reaching $2.73 isn't entirely out of the question.

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