"Weak on the outside, strong on the inside"...XRP, Reversal Signal Appears On-Chain

▲ XRP/ChatGPT generated image

An analysis suggests that despite XRP's price sluggishness, its on-chain indicators show a stable trend close to a bottom signal, indicating that the internal structure of the market has already begun to change.

According to crypto media outlet NewsBTC on April 24 (local time), despite XRP currently trading at a price lower than the average acquisition cost of its holders, on-chain indicators are showing signs of stabilization.

Alphractal, an analytics firm, explained that XRP's realized price is approximately $1.4862, while its spot price is around $1.4343, placing the entire market in an unrealized loss zone. This means investors are in a loss state, but it is also interpreted as a characteristic often seen in the late stages of a downturn.

The key MVRV (Market Value to Realized Value) indicator recorded 0.9613, below 1, indicating that the market is undervalued compared to the average acquisition price. The NUPL indicator also stood at -0.0402, in the 'fear' zone, which was analyzed as a typical trend observed in the late stages of a bear market or a deep sideways consolidation phase.

The supply structure is also noteworthy. The amount held by exchanges is approximately 3.68 billion XRP, which is only about 6% of the total circulating supply, limiting the amount available for sale. While exchange supply increased by 2.3% in the last 7 days, it is not considered a signal that the overall market is transitioning to a large-scale sell-off phase.

Network activity, on the other hand, is strengthening. The number of active addresses increased by 17.7% in one day and 40.8% in one week, reaching 48,946. Daily transaction count was 2.81 million, and the daily transaction value was approximately $29.58 billion. The trend of increasing participation indicators without a price increase suggests a potential increase in actual usage rather than speculative trading.

Overall, while XRP continues to show a bearish trend in terms of price, its on-chain structure, supply and demand, and network activity are showing signs of moving into a stable accumulation phase, different from a sharp decline phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*