XRP Shows Potential for Rebound as On-Chain Data Signals Market Shift

TLDR

• XRP is currently undervalued with a 30-day MVRV of -5.7%, signaling potential for price growth.
• The negative MVRV indicates that many short-term holders are at a loss, reducing selling pressure.
• XRP’s price is trading at $1.91, and its supply on exchanges is shrinking, which could support a price rebound.
• XRP is not alone in undervaluation, with other major assets like Chainlink and Ethereum also showing negative MVRV.
• The combination of low sell pressure and a decrease in exchange supply suggests a potential entry point for investors.

XRP’s on-chain metrics suggest that it may be poised for a potential rebound. According to Santiment, XRP price is currently undervalued, with a 30-day MVRV of -5.7%. This figure indicates that recent buyers are at a loss, which often signals a low-sales-pressure environment, potentially setting the stage for a price increase.

XRP’s MVRV: A Signal of Undervaluation

The Market Value to Realized Value (MVRV) ratio is a key indicator of an asset’s price relative to its on-chain realized value. When MVRV is negative, it implies that recent buyers are holding their positions at a loss. In XRP’s case, a -5.7% MVRV suggests that many short-term holders are underwater.

This negative MVRV indicates a reduction in selling pressure as these holders are unlikely to sell at a loss. This creates a situation where XRP’s price could see upward momentum once these holders are out of the market. Historically, such negative MVRV conditions have often been followed by long-term accumulation periods, signaling potential gains for patient investors.

XRP’s Price and Exchange Supply

At the time of writing, XRP is trading at $1.91, according to CoinCodex. Santiment’s data also shows that the supply of XRP on exchanges is shrinking, further supporting the potential for a price rise. A reduction in exchange supply coupled with an exhausted selling market could create a favorable environment for a price rebound.

XRP’s market conditions show signs of bottoming out, as fewer sellers remain active. This provides a potential entry point for investors looking to capitalize on undervalued conditions. The combination of a negative MVRV and a decrease in supply sets the stage for possible price increases in the near future.

Chainlink, Cardano, and Ethereum in Similar Territory

XRP is not alone in this undervaluation zone. Chainlink (LINK), Cardano (ADA), and Ethereum (ETH) also have negative MVRV ratios. Chainlink is the most undervalued of these, with a MVRV of -9.5%, indicating that LINK holders are facing the most significant losses.

Ethereum’s MVRV is -7.6%, and Cardano’s is at -7.9%, both showing similar undervaluation signals. Bitcoin (BTC) has a slightly higher MVRV of -3.7%, making it mildly undervalued. These figures collectively suggest that a few major assets in the crypto market are also nearing potential recovery zones, similar to XRP.

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