In a market searching for direction after recent volatility, data from the analytics platform Santiment has singled out XRP as the sole top-tier cryptocurrency showing signs of being undervalued.
According to a post from Santiment on December 12, XRP’s 30-day Market Value to Realized Value (MVRV) ratio stands at -6.1%, suggesting the average recent buyer is currently at a loss and positioning the asset for a potential swing trade opportunity.
A Market in a Holding Pattern
This metric is in sharp contrast to other major assets, with the analysis showing Bitcoin (BTC) in a neutral position at +2.4%, while Ethereum (ETH) appears mildly overvalued at +7.2%. It places XRP in a unique spot among giants, hinting at a disconnect between its current price and the average cost basis of its holders over the past month.
The notion of XRP being undervalued comes during a period of notable quiet for the token. As reported by analytics firm Arab Chain on December 10, derivative market data from Binance points to a cautious market. The XRP Open Interest Z-Score, which measures how far open interest deviates from its recent average, sits at a neutral 0.11.
This indicates a lack of the extreme speculative activity seen in previous months when the score exceeded 3.0. Furthermore, total open interest for XRP perpetual contracts is approximately 545 million tokens, a figure lower than November’s levels. This decline, coupled with stable standard deviation data, shows traders are maintaining positions rather than aggressively entering or exiting the market.
The collective behavior points to a waiting game, with participants likely anticipating a fresh catalyst before committing to a strong directional bet.
Looking at the market, XRP’s price performance is showing some technical hesitancy, with the asset currently changing hands around $2.03, representing a drop of roughly 16% over the past month. It remains stuck within a multi-month range, repeatedly finding support near $1.90 and facing selling pressure around the $2.10 mark.
While its Relative Strength Index suggests weak conditions, some technical analysts note oversold signals on shorter-term indicators, which could hint at a near-term reversal if key support holds.
Awaiting the Next Catalyst
Despite the present lull, XRP’s ecosystem has not been idle, providing potential foundations for future movement. The launch of several spot XRP ETFs in the United States, led by firms like Canary Capital and Grayscale in late November, has attracted significant investor interest, pulling in nearly $950 million in cumulative net inflows according to industry trackers.
Furthermore, Ripple’s own stablecoin, RLUSD, continues its expansion. After receiving regulatory recognition in Abu Dhabi in November, its market capitalization has grown to about $1.3 billion. While still small compared to dominant stablecoins, this growth represents steady progress in building utility within Ripple’s financial network.
For now, XRP finds itself at an interesting crossroads: labeled as undervalued by on-chain metrics, stuck in a neutral derivative landscape, and trading at a discount from recent highs. The market appears to be consolidating, weighing its current technical posture against a backdrop of longer-term ecosystem developments.
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