XRP saw a 16% increase in price last week ahead of the anticipated Ripple Swell event scheduled for November 8.
The Highly Anticipated Ripple Event
Ripple Swell is a two-day event held annually in November since 2017, where leading figures in the global payment industry gather to discuss various topics.
ASXN, a cryptocurrency research firm, recently stated in a post on X social media platform that XRP usually experiences an increase in value leading up to the Swell conference, followed by a downward trend.
The rise in price before the event could be attributed to the expectation of significant announcements usually made during the meeting.
A user named WKahneman mentioned in a post on October 27 that the specific announcements for this year’s Swell event remain uncertain. However, there are some possibilities on the table.
These include Initial Public Offering (IPO), obtaining a Virtual Assets Regulatory Authority (VARA) license, Central Bank Digital Currencies (CBDC), stablecoin/tokenization initiatives, and more.
Additionally, the event could shed light on whether Ripple still sees itself primarily as a payment company.
According to data from 21milyon.com, as of the time of writing, the altcoin traded at its highest price point since August 3, at $0.6822.
Current Statistics for Ripple
Furthermore, an evaluation of XRP investments on the blockchain regarding profitability revealed a stable growth in the token’s Market Value to Realized Value (MVRV) ratio.
The MVRV ratio of a token tracks the ratio between the current market price of that cryptocurrency and the average price per token. A positive MVRV ratio above the centerline can signal that a token is overvalued.
The higher this ratio goes, the higher the likelihood that analysts will show a desire to sell for profit based on historical trends.
According to the data, XRP’s MVRV is at its highest level since August 14, at 81.73%. At this value, if every XRP holder sells their tokens, they would make an average profit of 81.73% from their initial investments.
However, it is worth noting that XRP’s overvalued high levels of MVRV could indicate a potential price correction in the short term.
The basic momentum indicators observed in the daily chart of the token have instilled confidence in this position. XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) reached overbought peaks at 73.64 and 80.22, respectively.
