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XRP and Uniswap Still Underbought per This On-chain Data

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Mon, 01/31/2022 - 09:57
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Tomiwabold Olajide
XRP, Uniswap remain in underbought conditions according to this metric
XRP and Uniswap Still Underbought per This On-chain Data
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As on-chain and market data provided by Santiment suggests, XRP, Uniswap and other altcoins may have entered the opportunity zone, according to MVRV Divergence.

As the metric suggests, the increased volatility in the crypto market has seen trader profits plummet particularly hard during the recent price correction. The majority of crypto assets saw major price dips in January 2022 as markets continue to slide with every "buy the dip" call seeming to get invalidated.

Consequently, Uniswap's average trading returns have hit the lowest points as its price dips to the $10 range. At present prices, UNI is down 76.73% from all-time highs of $44.97.

Metrics like MVRV help point out when trader pain reveals buy windows. As is always the case, every extended period of loss generally rewards the patience of traders with buy opportunities.

According to Santiment, assets such as XRP and Uniswap have reached all-time negative MVRV levels; thus, opportunities for a price upswing might be presented to bring traders some relief.

XRP is presently changing hands at $0.58 after a multi-year stretch of lackluster trading action. At present prices, XRP is down 84.7% from all-time highs of $3.84 reached in January 2018.

XRP at most negative MVRV level

The on-chain analytics note that XRP has been at its most negative average MVRV level since late June 2021 after its price plunged 67%. It states that this metric was last in positive territory in mid-December when XRP attained highs of $1.07 after a six-day rally.

Despite XRP price action, Ripple CEO Brad Garlinghouse recently stated that his company was in the strongest financial position to date with $1 billion in the bank.

As U.Today earlier reported, Ripple's XRP sales have recorded a 46% quarter-over-quarter increase, with that attributed to "On-Demand Liquidity" (ODL) customers surpassing $1 billion in Q4, according to the company's recently published report. Ripple says that it keeps seeing more global demand for the ODL product, which now boasts 20 payout markets.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.