XRP News Today: XRP Whales Buy $519M in Tokens as NVT Ratio Hits Four-Month Low Suggesting Undervaluation

XRP has seen significant accumulation over the past three days, with investors acquiring 163 million tokens valued at $519 million. This surge in buying activity, coupled with a four-month low in the Network Value to Transactions (NVT) ratio, suggests the cryptocurrency may be undervalued relative to its network activity. The NVT ratio, a metric comparing market capitalization to on-chain transaction volume, has reached levels historically associated with price undervaluation, indicating that XRP’s valuation is supported by genuine utility rather than speculative fervor [1]. Analysts note that sustained accumulation by large holders often precedes upward price movements, reinforcing the potential for a breakout [1].

Currently trading at $3.17, XRP remains 15.3% below its all-time high of $3.66. Technical analysis highlights the importance of maintaining the $3.17 support level to avoid a bearish reversal. A retest of the $3.38 resistance level could trigger a push beyond previous highs, marking a critical milestone for the asset. Conversely, a drop below $3.00 would signal renewed bearish pressure, potentially dragging prices toward $2.96 or lower [1]. The recent decline in network-wide transaction volume—down approximately 40% month-on-month—raises questions about XRP’s immediate utility but also underscores the strategic buildup by institutional-like investors [1].

Market sentiment appears cautiously optimistic, with the accumulation trend and low NVT ratio aligning with a narrative of value-driven buying. However, analysts caution that prolonged low transaction volumes could indicate waning demand for XRP’s transactional use cases. The interplay between whale activity and on-chain metrics highlights the influence of large holders on price dynamics, a pattern observed in prior XRP cycles. While the current conditions do not explicitly project price forecasts, the combination of on-chain fundamentals and technical levels provides a framework for assessing potential price resilience [1].

Key factors driving XRP’s trajectory include the balance between network activity and market capitalization, as well as the stability of critical support levels. The NVT ratio’s historical correlation with price action suggests that XRP may be primed for a rebound if transactional demand stabilizes. Investors are advised to monitor on-chain metrics and macroeconomic catalysts, such as regulatory developments, to gauge the asset’s path forward.

Source: [1] [XRP Price: Network Activity Collapses as Whales Accumulate] [https://coincentral.com/xrp-price-network-activity-collapses-as-whales-accumulate-whats-next-for-xrp/]