XRP is currently undervalued as evidenced by $519 million in recent capital inflows and a four-month low NVT ratio, signaling strong investor confidence and potential for a price rebound.
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Over $519 million in XRP has been moved off exchanges in the past three days, indicating increased holder accumulation.
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XRP’s NVT ratio hitting a four-month low suggests network activity supports its market cap, reflecting genuine usage.
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The RSI near 64.60 and positive MACD show bullish momentum with room for further upward price movement.
XRP shows undervaluation with $519M inflows and low NVT ratio, signaling strong confidence and potential rebound. Stay updated with COINOTAG.
Exchange Balances Decline as Investors Accumulate XRP
XRP’s recent market activity highlights a significant drop in exchange-held balances, signaling strong accumulation by investors. Over the last three days, more than 163 million XRP, valued at approximately $519 million, have been withdrawn from exchanges. This trend suggests holders prefer private wallets, reducing selling pressure and indicating a bullish market sentiment.
On-Chain Metrics Confirm Growing Confidence
Data from Glassnode reveals a steady decline in XRP reserves on exchanges, which typically correlates with long-term holding strategies. This movement away from exchanges implies investors anticipate future price appreciation rather than immediate liquidation. Such behavior often precedes upward price momentum in digital assets.
Source: Glassnode
What Does XRP’s Four-Month Low NVT Ratio Indicate?
The Network Value to Transactions (NVT) ratio for XRP has reached its lowest level in four months, signaling potential undervaluation. A declining NVT ratio means that the network’s transaction volume is increasing relative to its market capitalization. This suggests that XRP’s usage is growing organically, rather than being driven by speculative trading.
Source: Glassnode
This metric, combined with the ongoing accumulation trend, supports a healthier market structure for XRP, reducing the likelihood of a speculative bubble and enhancing its investment appeal.
How Does XRP’s Technical Analysis Support a Potential Breakthrough?
XRP is trading at $3.26, approaching its all-time high (ATH) of $3.84, with technical indicators suggesting room for growth. The Relative Strength Index (RSI) stands at 64.60, below the overbought threshold of 70, indicating that buying momentum can continue. Meanwhile, the Moving Average Convergence Divergence (MACD) remains positive, though showing slight convergence, signaling sustained bullish control but a cautious pace.
Source: TradingView
This consolidation phase is typical before a breakout, suggesting XRP is building a solid foundation just below its ATH, ready to capitalize on favorable market conditions.
| Metric | Current Value | Comparison |
|---|---|---|
| Exchange Balances | 163M XRP withdrawn | Significant decrease over 3 days |
| NVT Ratio | 4-month low | Lowest since March 2025 |
| RSI | 64.60 | Below overbought threshold |
Frequently Asked Questions
Why is XRP’s NVT ratio important for investors?
The NVT ratio measures the relationship between XRP’s market cap and transaction volume. A low NVT ratio indicates strong network usage relative to price, suggesting undervaluation and solid fundamentals.
How does exchange balance affect XRP’s price?
When XRP balances on exchanges drop, it means investors are moving tokens to private wallets, reducing sell pressure and often signaling confidence in price appreciation.
Key Takeaways
- Investor accumulation: Over $519 million worth of XRP moved off exchanges in three days, indicating strong holder confidence.
- Market valuation: XRP’s NVT ratio at a four-month low points to undervaluation and genuine network usage.
- Technical outlook: RSI and MACD indicators support potential for XRP to approach or surpass its all-time high.
Conclusion
XRP’s recent capital inflows and declining NVT ratio demonstrate growing investor confidence and a potentially undervalued market position. Technical indicators suggest momentum is building for a price rebound, positioning XRP as a key asset to watch in the crypto space. COINOTAG will continue monitoring developments to provide timely updates.
