XRP (Ripple), Yield 'Plunges' to 12-Year Low... Is Now the Time to Buy the Dip for $21?

▲ XRP

The average return for XRP investors has fallen to its lowest level in 12 years. Amidst extreme fear, bullish predictions for XRP to reach $21 are resurfacing.

According to crypto news outlet CCN on July 3 (local time), the trading yield of XRP Ledger (XRPL) has dropped to its lowest level in approximately 12 years of trading history. On-chain data shows that both short-term and long-term investors have entered deep loss territory.

Blockchain analytics firm Santiment stated that XRP's 30-day Market Value to Realized Value (MVRV) has fallen to 45%. The 365-day MVRV recorded -47%. Santiment explained, "Looking at both periods together, XRP has never had a lower average return in its 12-year trading history."

Santiment diagnosed that investor fear and frustration have become extremely high. However, it also viewed the same data as potentially indicating a period of reduced risk from a long-term perspective. Santiment stated, "Buying or adding XRP in this range carries significantly lower risk than average." This judgment is based on the idea that much of the downward pressure has already been absorbed by other traders.

Bullish sentiment has also re-emerged in price forecasts. Motley Fool analyst Dominic Basulto analyzed that if Ripple continues to expand its real-world use cases, XRP could recover significantly within the next three years. He said, "The situation for XRP could soon reverse." He added, "Investors need patience, but XRP has the potential for its value to surge within the next three years."

Basulto noted that market targets of $27 and even ultra-bullish forecasts of $100 are being discussed. However, he expressed caution regarding double-digit price predictions. He stated, "Currently, the calculations do not support double-digit price forecasts." In a baseline scenario, he saw a high probability of XRP remaining in the $1 to $4 range for several years to come.

CCN's technical analysis also suggested the possibility of a short-term recovery. XRP defended the $1.01 to $1.06 support zone multiple times at the end of June. A rounded bottom reversal pattern formed on the 4-hour chart. CCN analyst Giuseppe Ciccomascolo analyzed, "If buyers maintain control, XRP could climb towards $1.15 in the short term." However, if it fails to hold support near $1.07, there remains a possibility of retesting the $1.04 support zone.

[Article Summary]

-XRP's 30-day MVRV fell to 45%, and its 365-day MVRV to -47%, entering the lowest yield period in its 12-year trading history.

-Santiment assessed that investor fear has become extreme, but long-term buying risk has decreased below average.

-Dominic Basulto believed XRP could recover within three years but remained cautious about double-digit price forecasts.

*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.*