XRP, undervalued signal appeared, but why can't it break $1.50?

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Despite signs of undervaluation, XRP (Ripple) has repeatedly failed to break the $1.50 mark, leading to a stronger wait-and-see attitude in the market. However, an analysis suggests that on-chain data still shows signals indicating a potential bottom.

According to investment media FXStreet on May 14 (local time), XRP is currently trading above its short-term support level of $1.42 but has fallen approximately 5% from its recent monthly high of $1.51. The outlet diagnosed that risk-off sentiment and weakening institutional demand are undermining XRP's rebound.

On-chain data once again highlighted the possibility of XRP being undervalued. According to Glassnode, XRP's Market Value to Realized Value (MVRV) Z-score recently dropped to 0.04, remaining below its realized value. The MVRV Z-score is an indicator that analyzes whether an asset is overvalued or undervalued by looking at the difference between its market capitalization and realized value. FXStreet explained that if XRP's market capitalization is lower than its realized value, it suggests a potential market bottom. Indeed, XRP's MVRV Z-score has consistently moved below the fair value since February, indicating a potential undervalued state.

However, no clear upward momentum has been observed in the ETF market. The U.S. XRP spot ETF recorded a flat trend today with no new capital inflow. According to SoSoValue data, the cumulative net inflow for XRP spot ETFs remained at approximately $1.36 billion, but the total net assets slightly decreased from $1.16 billion on the previous day to $1.14 billion. FXStreet analyzed that institutional investment flows have recently slowed down somewhat.

Technically, XRP is currently moving between its 50-day Exponential Moving Average (EMA) of $1.42 and its 100-day EMA of $1.49, maintaining a neutral trend. However, the 200-day EMA at $1.70 still acts as a key resistance level forming a long-term bearish structure. The Relative Strength Index (RSI) recorded a level of 53 on a daily basis, and the Moving Average Convergence Divergence (MACD) histogram also remained slightly positive, indicating limited upward momentum.

FXStreet suggested $1.45 and $1.49 as upper resistance levels for XRP, followed by a $1.50 downtrend line. Conversely, at the lower end, the 50-day EMA at $1.42 and the Parabolic SAR at $1.40 were analyzed as key support zones. The outlet warned that if XRP falls below this support zone, additional downward pressure could intensify.

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