"Weak on the outside, strong on the inside"...XRP, reversal signal emerges on-chain

▲ XRP/ChatGPT generated image

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

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

Analytics firm Alphractal explained that XRP's realized price is approximately $1.4862, while its spot price is around $1.4343, indicating that the entire market is 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 decline.

The key MVRV (Market Value to Realized Value) ratio recorded 0.9613, below 1, indicating that the market is undervalued compared to the average purchase price. The NUPL (Net Unrealized Profit/Loss) indicator also stood at -0.0402, placing it in the 'fear' zone, which is analyzed as a typical trend observed in the late stages of a bear market or during deep sideways consolidation.

The supply structure is also notable. Exchange holdings amount to approximately 3.68 billion XRP, which is only about 6% of the total circulating supply, indicating a limited amount of sellable assets. Although exchange supply increased by 2.3% in the last 7 days, it is not considered a signal that the overall market has shifted into a large-scale selling phase.

Network activity is, in fact, strengthening. Active addresses increased by 17.7% in a day and 40.8% in a week, reaching 48,946. Daily transaction counts reached 2.81 million, with a daily transaction value of approximately $29.58 billion. This trend of increasing participation indicators without a corresponding price increase suggests a potential rise 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 suggest a shift towards a stable accumulation phase, distinct from a sharp decline.

*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.*