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XRP Reverts to Historical Opportunity Zone per This Indicator

Sat, 08/19/2023 - 13:06
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Tomiwabold Olajide
XRP is vastly undervalued after significant sell-off this week
XRP Reverts to Historical Opportunity Zone per This Indicator
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According to the Santiment MVRV opportunity and danger zone model, XRP has returned to the historic opportunity zone.

A zoom-in on Santiment's MVRV opportunity and danger zone divergence chart shows that XRP is currently in the "underbought zone."

According to an analysis by the on-chain analytics firm on X (formerly Twitter), crypto market capitalization has plummeted significantly as a result of the recent market sell-off, and as a result, traders are strongly divided, having mixed perceptions.

Regardless, Santiment highlights an obvious fact: Average crypto returns are in a mathematically historic opportunity zone. This is because altcoins, including XRP, are vastly undervalued after a significant sell-off this week.

Underbought or oversold conditions refer to a state in which an asset has fallen sharply and is expected to bounce higher.

According to crypto expert Benjamen Cowen, XRP has completely retraced the entirety of the move that came after the SEC v. Ripple ruling. He maintains that narratives such as the Ripple ruling do not sustainably impact the XRP price. Cowen adds that the price of altcoins is more a function of excess liquidity than of who wins a court battle.

On Aug. 17, XRP fell sharply to lows of $0.436 following a major sell-off in the market, which saw millions of dollars in crypto liquidations in a relatively short period. XRP has slightly recovered from these lows, being marginally down in the last 24 hours to $0.504.

Recent developments in Ripple SEC lawsuit

On Aug. 17, the judge released a new scheduling order in which the SEC was allowed to request an interlocutory appeal. Afterward, the SEC submitted its request for an interlocutory appeal on Aug. 18.

As regards the new development, lawyers in the XRP community took to X (formerly Twitter) to put some facts straight.

Attorney Jeremy Hogan clarifies that the latest filing is the SEC's request to allow it to file an appeal and not an appeal itself. Hogan adds that the SEC filing was technically a non-appeal motion because it was not appellate.

CryptoLaw, a legal entity founded by XRP holders' attorney John Deaton, highlights a key fact: The SEC is not appealing the fact that the XRP token is not a security.

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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.