XRP Undervalued? On-Chain Data Signals Potential Upside

XRP and Major Cryptos Signal Undervalued Buying Zones

Santiment’s on-chain analytics highlight XRP as notably undervalued. With a 30-day MVRV of -5.7%, XRP sits in the ‘undervalued’ zone, signaling potential upside for investors.

The MVRV ratio measures an asset’s market value against its on-chain realized value. A negative MVRV signals that recent buyers are holding at a loss, often indicating low sell pressure and market pessimism, conditions that can set the stage for a potential rebound.

XRP’s -5.7% MVRV shows many short-term holders are underwater, a signal historically linked to long-term accumulation. With exchange supply shrinking and sellers exhausted, prices may be entering a discount zone, presenting potential lower-risk entry points for patient investors. Notably, XRP is presenting trading at $1.91 per CoinCodex data.

XRP isn’t alone in this valuation territory. Santiment’s data shows several other major assets also trading below their realized value:

• Chainlink (LINK): -9.5% (Undervalued)

• Cardano (ADA): -7.9% (Undervalued)

• Ethereum (ETH): -7.6% (Undervalued)

• Bitcoin (BTC): -3.7% (Mildly Undervalued)

Well, Chainlink stands out as the most undervalued, with a nearly double-digit negative MVRV, indicating LINK holders are deeper in the red than most major assets, a classic signal that contrarian investors often monitor for potential opportunities.

Understanding MVRV is key to spotting market opportunities. A negative MVRV shows the average trader is at a loss, which can reduce selling pressure and create favorable entry points. The more negative the value, the stronger the potential risk-reward.

Conversely, a positive MVRV indicates traders are in profit, increasing the likelihood of sell-offs and signaling caution.

Santiment’s MVRV data suggests XRP, and other major cryptos, may be trading below recent on-chain value. While macro factors still matter, these signals hint that informed traders could be positioning for gains while the broader market hesitates.

Conclusion

Santiment’s MVRV data shows XRP, Chainlink, Cardano, and Ethereum trading below their realized value, signaling potential discount zones for strategic investors. 

While a negative MVRV doesn’t ensure an immediate rebound, it indicates reduced selling pressure and favorable conditions for accumulation. Traders seeking lower-risk entries may view these levels as opportunities to position ahead of a potential market recovery, while staying mindful of broader macro and market dynamics.