Ripple (XRP) price has remained rooted below $0.55 as it struggles to reclaim losses from the August 17 crypto market downturn. A vital on-chain indicator highlights the prevailing bearish momentum as the main factor hindering the XRP price breakout. 

Ripple price rejected the $0.55 resistance level as the bears rebuffed an early rebound attempt. But despite recent price woes, key on-chain indicators reveal that XRP network activity has remained steady. 

Amid Bearish Headwinds, XRP is Currently Undervalued

According to on-chain data, the prevailing bearish sentiment across the crypto market is one of the key drivers preventing XRP price breakout. Santiment’s Network Value to Transaction Volume (NVT) ratio assesses underlying transactional activity on a blockchain network relative to recent price performance.

As depicted below, the XRP NVT ratio has increased by a staggering 340% from 51.66 to 226 between August 18 and August 24. 

Concisely put, when the NVT ratio rises, as observed above, it indicates a steady growth in underlying economic activity relative to the price downtrend. Logically, this suggests that external factors such as bearish market speculation are currently responsible for driving XRP price downward. 

XRP’s current undervalued status puts it in a prime position to score significant gains once the market sentiment flips bullish. 

Long-Term Investors Are Holding Out for a Momentum Swing 

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Author: Ibrahim Ajibade

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