Key Takeaways
With exchange balances dropping and the NVT ratio at a four-month low, market data points to potential undervaluation for XRP and growing momentum for a price rebound.
Ripple [XRP] is back in the spotlight.
Over the past three days, the token has seen a staggering $519 million in capital inflows in an overwhelming sign of confidence.
At the same time, XRP’s NVT Ratio dropped to a four-month low, often interpreted as a sign of undervaluation. While on-chain metrics shift, is a price rebound on the cards?
Exchange balances drop as investors HODL
XRP’s bullish momentum is gaining traction, supported by a sharp drop in exchange balances.
Over the last three days, more than 163 million XRP — worth roughly $519 million — have been scooped up by investors.
Glassnode data showed a clear decline in XRP held on exchanges, suggesting that holders are moving assets into private wallets rather than preparing to sell.
Source: Glassnode
This indicates growing market confidence and a long-term outlook.
With investors tightening their grip, the reduced selling pressure could act as a launchpad for price recovery, potentially pushing XRP closer to retesting its previous all-time high.
XRP NVT at a 4-month low
XRP’s NVT ratio has dropped to its lowest point in four months, a clear sign that the asset is not currently overvalued.
The attached chart highlights this decline, indicating that network activity is keeping pace with XRP’s rising market cap. A low NVT ratio often reflects genuine usage rather than hype-driven speculation.
Source: Glassnode
Coupled with strong investor accumulation and a reduction in exchange balances, this suggests a healthy market structure.
Can XRP breakthrough?
XRP traded at $3.26 at press time, inching closer to its ATH of $3.84. As seen in the chart, the RSI was at 64.60 — hovering just below the overbought threshold — suggesting there’s still room for upward movement.
Source: TradingView
Meanwhile, the MACD remained in positive territory, albeit with slight convergence, indicating bulls are still in control, but the pace may be slowing.
Having said that, consolidation isn’t weakness—XRP appears to be building a base just below its previous high, positioning for a breakout if macro and market conditions align.
