XRP’s muted reaction over the past few weeks has presented a buying opportunity. On-chain data shows that the altcoin is undervalued, and some investors may want to “buy the dip.”
However, the asset’s technical setup suggests that the downturn is far from over.
Ripple May Look Attractive, But There Is a Catch
XRP has shed almost 10% of its value in the last month. This price drop has led to a negative market value to realized value (MVRV) ratio, suggesting that the seventh crypto asset by market capitalization may be undervalued.
As of now, XRP’s 30-day and 90-day MVRV ratios are -3.85 and -2.66, respectively. These figures indicate that the current price is lower than the average cost of all XRP tokens in circulation, making the altcoin an attractive option for traders looking to buy at a lower price than its historical cost basis.
However, XRP is not out of the woods yet. The asset continues to face negative sentiment, as reflected by its weighted sentiment score, which currently stands at -0.18.
When the value of an asset’s weighted sentiment is below zero, most social media discussions are fueled by negative emotions like fear, uncertainty, and doubt. In a downtrend, it hints at a continued decline.
Read more: 10 Best Altcoin Exchanges In 2024
XRP Price Prediction: Token Aims For New Low
Ripple’s technical setup reinforces the bearish outlook. The Elder-Ray Index (ERI), which
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Author: Abiodun Oladokun
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