The rate of new XRP investors is the lowest in 4 months, and the price recovery faces challenges.

XRP has recently been struggling to break through the important resistance level at $2.56, a price point that this token has failed to surpass twice in March. This is the final barrier on the journey to conquer the $3 mark.

However, despite showing some positive movements, XRP's inability to break this resistance could signal the continuation of the consolidation phase, especially in current market conditions.

XRP investors are uncertain

The Network Value to Transaction ratio of XRP has reached a 5-year high – the highest level since January 2020. This metric compares the market capitalization of a cryptocurrency to the transaction volume being processed on its network.

A high NVT ratio signals that although investors are optimistic, that optimism is not translating into actual growth or network usage. This divergence often indicates that the market is overheated, typically correcting when the excitement subsides.

The current NVT ratio indicates that the value of XRP is far exceeding trading activity, which is a bearish signal. As the market cools down, this imbalance could lead to a price correction, further hindering XRP's efforts to break through key resistance levels.

XRP's NVT Ratio | Source: GlassnodeThe macro dynamics of XRP are also showing signs of stress. The network's growth is currently at its lowest in 4 months, reflecting a slowdown in the creation of new addresses.

This is an important metric for assessing the appeal of a cryptocurrency in the market, as the increasing number of active addresses often indicates rising adoption.

In the case of XRP, the lack of new addresses indicates that this altcoin is struggling to attract new investors. The lack of incentive for new investors to join the network further diminishes XRP's prospects.

XRP network growth | Source: Santiment## XRP price struggles with breakout

XRP is currently trading at $2.4, just below the resistance level of $2.56. This level has proven to be a strong barrier, with XRP unable to break through it twice this month.

Therefore, this altcoin is likely to continue consolidating within the range of $2.27 to $2.56. This consolidation phase may last if market conditions do not change.

If the discount conditions worsen, XRP could slide below the support level of $2.27. In this case, the price of XRP may drop to $2.14 or lower, erasing much of the recent recovery from the $2 level.

Continuing this downward trend will reinforce the bearish outlook.

XRP Price Analysis | Source: TradingViewHowever, if XRP can surpass the resistance level of $2.56 and turn it into support, the bearish argument will be invalidated. A successful breakout could push XRP up to $2.95 and eventually to the $3 mark.

This will require strong support from investors and a more favorable market environment to sustain the momentum.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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Minh Anh

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