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On-chain data shows the XRP Market Value to Realized Value (MVRV) Ratio has just gone through a crossover that may not be positive for the asset’s price.
XRP MVRV Ratio Has Dropped Under Its 200-Day MA
As pointed out by analyst Ali Martinez in a new post on X, the MVRV Ratio’s latest crossover may signal a macro trend shift for XRP. The “MVRV Ratio” refers to an on-chain indicator that keeps track of the ratio between a given asset’s market cap and its realized cap.
The realized cap is a capitalization model that calculates the cryptocurrency’s ‘true’ value by assuming that the real value of any token in circulation is the spot price at which it was last transacted on the network.
The previous transaction price of any coin can be considered the value at which its investor purchased it, so the realized cap represents the total amount of capital that the asset’s holders as a whole spent to purchase their holdings. In contrast, the market cap just tells us what value the investors are holding in the present.
Since the MVRV Ratio takes the ratio between these two metrics, it basically signifies the profit-loss status of the market as a whole. The indicator being greater than 1 suggests investors are holding more than they invested, while it being under the mark implies a dominance of underwater tokens.
Now, here is the chart shared by the analyst that shows the trend in the XRP MVRV Ratio, as well as its 200-day moving average (MA), over the last few months:
As displayed in the above graph, the XRP MVRV Ratio has witnessed a plunge recently as a result of the drawdown that the cryptocurrency’s price has gone through.
Though, despite the price crash, the indicator’s value continues to be well above the 1 level, meaning that the investors of the asset are still largely in the green. That said, there is one important level that the metric has indeed dipped below due to the downtrend: the 200-day MA.
The MVRV Ratio broke above the level in the last few months of 2024 and remained above it until this breakdown. From the chart, it’s apparent that the previous crossover proved to be a bullish signal for XRP.
Now that the reverse crossover has occurred, the analyst has noted that another potential macro trend shift could be ahead for the cryptocurrency’s price. It only remains to be seen whether the asset will continue to decline in the coming days and confirm the pattern or not.
XRP Price
At the time of writing, XRP is floating around 2.23, up more than 5% over the last seven days.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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