Traders panic sell XRP even though a rare “buy signal” reveals Wall Street is buying up the distressed supply
Despite panic selling, XRP shows a rare buy signal as institutional buying suggests the asset is undervalued.Summary
XRP is exhibiting a rare 'buy zone' signal according to Santiment's 30-day MVRV metric (-5.7%), indicating the asset may be undervalued as recent buyers are underwater. This suggests a potential price rebound, supported by record stablecoin liquidity, which acts as dry powder for potential rotation into large assets like XRP. However, the market structure is complex: while on-chain value signals are positive, a fragile derivatives market with $3.3 billion in open interest risks forced liquidations amplifying short-term price moves. A key differentiator this cycle is strong institutional demand, evidenced by $90 million in XRP inflows this year and significant ETF flows, shifting demand from retail speculation to mandate-driven allocation. Furthermore, XRP exchange reserves on Binance are rising, suggesting liquidity is returning to exchanges for reinvestment, and corporate developments at Ripple, including acquisitions and regulatory expansion, frame the token as a liquid proxy exposed to retail sentiment but underpinned by growing enterprise infrastructure. The current undervaluation hinges on whether leverage can be absorbed without a cascade, potentially leading to a mean reversion toward the $1.99 breakeven zone.
(Source：CryptoSlate)