XRP has been attempting a recovery recently, showing positive price movement. The surge is fueled by a shift in investor sentiment, with many holders now taking a more bullish stance toward the altcoin. 

This change is likely to drive the price higher, possibly targeting the $3.00 mark.  

XRP Holders Seem Bullish

Active addresses on the XRP network have remained notably high throughout March, signaling increased investor engagement averaging at 363,000. This consistent activity is a clear indication that investor sentiment has shifted positively compared to January and February. 

The growth in active addresses reflects stronger support for the altcoin as more participants continue to engage with the network. As the demand for XRP increases, this heightened engagement could push the price to higher levels. 

The Chaikin Money Flow (CMF) indicator shows a clear shift in investor behavior. While March began with significant outflows, the trend reversed as investors poured money back into XRP. This positive change comes after a month of outflows in February, reflecting a shift towards accumulation.  

As market conditions fluctuate, XRP investors have shown resilience, continuing to buy into the asset despite external volatility. The increase in capital inflows suggests that the market is stabilizing, with XRP gaining support from those confident in its future. This shift in momentum offers XRP room to grow and continue its upward trajectory.  

XRP Price Faces Resistance

XRP price is trading at $2.48 today, marking a 22% increase over the last ten days. The altcoin is now testing the resistance at $2.56, a level it has struggled to surpass in the past. Given the positive market sentiment and increased investor participation, XRP could break through this barrier.  

If XRP manages to flip the $2.56 resistance into support, the next target will be $3.00. Overcoming the $2.95 resistance would pave the way for further gains, with the price potentially climbing towards the $3.00 mark. The current bullish momentum supports this outlook as investors appear ready to push the price higher.  

However, if XRP fails to breach the $2.56 resistance, it could face a pullback to $2.27. Losing the support at $2.27 would invalidate the bullish outlook, sending the price down to $2.14.

BNB Chain, the blockchain ecosystem previously associated with Binance, has shot to the top of the DEX market, overtaking Ethereum and Solana.

Over the past week, BNB Chain has been leading in trading volume and fee generation, showing strong growth despite broader market doldrums. The network exclusively discussed this milestone with BeInCrypto today.

Is BNB Chain Overtaking Solana in the DEX Market?

Decentralized exchanges have seen heightened activities in the past few months, mostly driven by meme coins and speculative trading. Solana has been by far the most popular network for DEX activities. However, in the past week, the BNB chain has threatened Solana’s dominance.

“For six consecutive days, since March 15, DEXs built on BSC have accounted for over 30% of the total DEX market share, outpacing other chains and reinforcing BNB Chain’s position in the DeFi space,” the firm claimed in an exclusive press release shared with BeInCrypto.

The network has seen several positive developments recently, such as expanding into RWA tokenization and AI integration. Yet, BNB’s success in the DEX segment has been crucial, as it shows that traders’ preferences might be shifting.

Earlier today, meme coins on BNB significantly boosted its DEX volume, helping explain where some of this dominance comes from. It seems that the network is slowly building credibility among the meme coin community.

Just yesterday, Binance opened a community vote to determine the exchange’s future token listings. The candidates in this first vote were all built on its blockchain, and some of these, such as Mubarak, are looking at huge price rallies.

Binance claimed that BNB Chain has earned more than $1.6 million in fees daily since March 17. This puts the ecosystem ahead of BTC in terms of growth rate over the last week.

This growth is more impressive because it took place despite bearish market signals.

Still, not everything is looking rosy for BNB Chain, even in the meme coin market. Earlier today, blockchain security firm SlowMist identified a critical exploit vulnerability on four.meme, a token launch pad in BNB’s ecosystem.

Some have worried that this may discourage investors from this whole category of DEXs.

However, PancakeSwap, another BNB-based DEX, is still going strong. Earlier this month, it posted $80 billion in monthly volume and credited BNB Chain’s recovery for this activity boom.

Changpeng “CZ” Zhao, former CEO of Binance, also created a meme coin rally by revealing his BNB holdings last month. All these factors signal strong market confidence.

Solana has struggled to maintain its recovery momentum, with the crypto token’s price failing to break past $150 despite multiple attempts. The altcoin’s price action reflects a lack of sustained bullishness, making further gains difficult.

However, strong investor support is keeping SOL from experiencing a sudden or sharp decline. This balance has left the cryptocurrency in a neutral position.  

Solana Is Overvalued

The NVT Ratio, a key metric that measures Solana’s valuation relative to transaction activity, is at a four-month high. This suggests that while the network’s value is rising, transaction activity has not kept pace.

Historically, such discrepancies indicate an overvaluation, which often leads to price corrections. If transaction volumes fail to catch up, SOL could struggle to maintain its current price.  Unless transaction activity increases, the overvaluation could result in a period of stagnation or mild corrections. 

Liveliness, an indicator measuring long-term holders’ behavior, is showing a notable decline. This means that investors who previously sold their holdings are now shifting toward accumulation. When long-term holders accumulate, it signals confidence in the asset, reducing the likelihood of large sell-offs that could trigger price drops.  

Earlier this month, Solana saw a sharp spike in liveliness, indicating significant liquidations. However, the current downtrend in this metric suggests a shift back to accumulation. This could act as a buffer against major price corrections.

SOL Price Fall Prevented

Solana’s price is up 6% in the last 24 hours, trading at $133 at the time of writing. The altcoin has remained stuck below $135 for several days, struggling to flip $148 into a support level for over a month. The lack of momentum has prevented SOL from making a decisive move upward.  

The current market conditions present mixed signals. While overvaluation raises the risk of correction, the accumulation by long-term holders provides support.

As a result, Solana is likely to remain under $150, failing to breach $148. However, it is also unlikely to drop below the key supports of $125 and $118, even in a bearish scenario.

If Solana either successfully tests $148 as support or drops to $109, the neutral outlook would be invalidated. In that case, depending on broader market conditions and investor sentiment, the cryptocurrency could continue in the respective direction.