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With the market in a state of panic, Santiment says the reliable XRP MVRV indicator suggests that this may be a good time to consider buying the XRP dip.
Bitcoin fell under $90,000 this morning, dragging altcoins like XRP down with it. Notably, while the XRPL native token has shown resilience in holding above the $2 price mark, it has corrected by 3.65% over the past 24 hours and by 13% in the previous week.
Buy the XRP Dip: Santiment
However, this might be the best time to buy the dip, according to data from Santiment. The market intelligence platform highlighted in a Monday social media post that most of the major cryptocurrencies are becoming unprofitable for short-term holders.
Wallets that bought XRP in the past 30 days are experiencing an average portfolio decline of 10.2%, indicating significant pain for average trading returns. While this may be unfortunate for those affected, Santiment emphasized the need to buy now. The platform noted that this is a “good buy zone” for XRP.
XRP MVRV Supports Clarion Buy Call
Strengthening this conviction, Santiment employed the market value to realized value (MVRV). For the uninitiated, the indicator compares the current market price of an asset with its realized value. This metric measures the value of the asset in relation to the last time it was moved, showing when holders are in a loss or in profit.
Santiment noted that the MVRV is a good metric to identify good buy zones. While support and resistance provide similar context, the MVRV offers a more accurate reference. The platform highlighted that the lower the MVRV, the higher the chances of a rapid rebound.
“Buy assets when average trader returns of your peers are in extreme negatives,” Santiment added.
Meanwhile, the data shows that XRP has fared better in terms of performance compared to other major assets in the past 30 days. Although this is positive for prices, it means XRP has a higher MVRV Z-score.
The tweet shows that Bitcoin holders who bought in the past 30 days have an average loss of 11.5%, also presenting a good buy zone. However, other assets like Ethereum, Chainlink, and Cardano are in the “extreme buy zone” territory, with performances of -15.4%, -16.8%, and -19.7% for buyers in the past month.
XRP at $2 is a Blessing
Notably, Santiment’s analysis adds to the growing sentiment that XRP is a good buy at the current price levels. Coach JV also shares this sentiment, stating earlier this month that XRP trading around the $2 support is a blessing.
He advised taking the opportunity to load up, suggesting that one’s disposition towards this dip would determine their financial status in the near future. Income Shark also believes this is true, stating that those who missed the chance to buy XRP under $2 would soon have the opportunity.