XRP Faces Bearish MVRV Crossover—Price Plunge To Continue?
On-chain data shows that XRP’s market value (MVRV) ratio has just experienced a crossover that may be unfavorable to asset prices.
XRP MVRV ratio dropped by 200 days MA
As analyst Ali Martinez pointed out postal On X, the latest crossover of MVRV ratios may mark a macro trend change in XRP. this”MVRV comparison” refers to an on-chain indicator that tracks the ratio between the market value of a given asset and the realized upper limit.
this The upper limit of implementation is a capital model that calculates the “real” value of a cryptocurrency by assuming that the actual value of any token in circulation is the spot price that was last traded on the network.
The previous transaction price of any coin can be considered as the value purchased by its investors, so the realized cap represents the total amount of capital used by the asset holder as a whole to purchase its shares. In contrast, market value only tells us what investors currently have.
Since the MVRV ratio reaches the ratio between these two indicators, it basically represents the profit loss status of the entire market. The indicator is greater than 1, which indicates that the investor holds more than his investment, and that investor under the mark means the dominance of underwater tokens.
Now, here is a chart shared by analysts showing the XRP MVRV ratios over the past few months and its 200-day moving average (MA) trend:
As shown in the above figure, the XRP MVRV ratio has been recently witnessed decline The price of cryptocurrency has been realized.
However, despite the price crash, the value of the indicator is still well above level 1, meaning investors in the asset are still largely in green. That is, due to the downtrend: 200-day MA, the indicator has indeed fallen below.
The MVRV ratio exceeded the level in the last few months of 2024 and remained above it until it collapsed. Judging from the chart, it is obvious that previous crossover facts proved to be bullish signals for XRP.
Now that the reverse crossover occurs, analysts point out that there may be another potential macro trend change in the price of cryptocurrencies. Whether the assets will continue to decline in the coming days and confirm the pattern remains to be seen.
XRP Price
At the time of writing, XRP floats about 2.23, up more than 5% over the past seven days.
