XRP has been making waves in the cryptocurrency market, defying broader bearish trends to reach a new yearly high. Over the past 24 hours, the token has outperformed major cryptocurrencies, showcasing impressive gains. The driving force behind this surge appears to be increased activity from whale investors, signaling a shift in market sentiment that could hint at a strong future performance for Ripple’s native asset. With key metrics pointing towards ongoing accumulation, the question remains: Is XRP still undervalued despite this rally?

XRP Outshines the Market Amidst a Downtrend

While the cryptocurrency market has experienced heightened volatility, with flagship assets like Bitcoin (BTC) seeing sharp declines, XRP has bucked the trend. Over the past day, XRP surged by 15.3%, reaching a peak trading value of $0.80, its highest level in a year. This upward momentum stands in stark contrast to the broader market, which has struggled with sell-offs and decreased investor confidence.

The recent price action suggests a growing bullish sentiment among XRP holders, who appear to be optimistic about the token’s prospects. The outperformance of XRP amid a market downturn indicates that investors are increasingly viewing it as a valuable asset, potentially due to its strong fundamentals and the recent legal clarity following Ripple’s partial victory against the SEC.

Whales and Sharks Accumulate 45.61 Billion XRP

A key factor in XRP’s recent surge is the increased accumulation by large holders, often referred to as “whales” and “sharks.” According to data from Santiment, wallets holding at least one million XRP have accumulated a staggering 45.61 billion tokens. This is the highest level of holdings since June 2018, reflecting a significant shift in investor sentiment over the past few months.

The accumulation by these large holders has been a major driver of XRP’s recent price performance. Over the last two years, these whale wallets have increased their XRP holdings by 3.44 billion tokens, marking an 8.16% growth in their total stake. This consistent accumulation suggests a high level of confidence among major investors in the long-term value of XRP.

XRP’s Market Value to Realized Value (MVRV) Shows Bullish Sentiment

Beyond simple accumulation, other key metrics point towards a continued bullish outlook for XRP. One such metric is the Market Value to Realized Value (MVRV) Long/Short Difference. This indicator has risen from -2.7% to 1.21%, signaling a shift from negative to positive territory. When the MVRV metric rises, it suggests that long-term holders are increasingly confident in the asset’s potential, as they are now in profit and continue to hold their positions.

The increase in the MVRV Long/Short Difference implies that the current market sentiment is positive, with many holders anticipating further gains. This optimism is likely fueled by the recent accumulation trends among whales and the overall growth in usage of the Ripple network.

Declining NVT Ratio Suggests Further Accumulation and Value

Another significant metric supporting the bullish case for XRP is the decline in its Network Value to Transactions (NVT) Ratio. Over the past week, the NVT Ratio has dropped from 136.8 to 44.9. A lower NVT Ratio indicates that the asset is seeing higher usage relative to its market cap, suggesting increased investor interest and activity on the blockchain.

The decline in the NVT Ratio is often interpreted as a sign that an asset is undervalued, as it implies that the network’s activity is increasing faster than its market capitalization. In the case of XRP, this suggests that investors believe there is still room for the token to grow, despite its recent rally.

Price Projections: What’s Next for XRP?

Given the current bullish sentiment and the strong accumulation by whale investors, XRP appears poised for further gains. Market analysts are watching key resistance levels closely. If XRP can break through the immediate resistance at $0.85, it may set its sights on the next significant level at $0.94.

The recent surge in whale accumulation, combined with the positive shift in MVRV and declining NVT Ratio, suggests that XRP is in a strong position to continue its upward trend. With increasing network usage and a growing number of large holders, the token’s value may have further upside potential.

Is XRP Still Undervalued?

Despite the recent price increase, many analysts believe that XRP remains undervalued. The sustained accumulation by large holders indicates a strong belief in the asset’s long-term value, particularly as Ripple continues to expand its use cases and partnerships globally. Moreover, the ongoing legal battles with the SEC have added a layer of uncertainty that has kept some investors cautious, potentially suppressing the token’s price compared to its true potential.

As the legal situation becomes clearer and Ripple makes strides in developing its payment solutions, the demand for XRP could increase significantly. This, coupled with the strong accumulation trends, suggests that the current rally might just be the beginning of a more extended bullish phase for XRP.

Conclusion

XRP’s recent performance highlights its resilience in a challenging market environment. The token’s ability to reach a yearly high, driven by significant whale accumulation, indicates strong investor confidence and suggests that it may still be undervalued. With key metrics like the MVRV and NVT Ratio pointing towards ongoing accumulation and increased network usage, XRP could have substantial room for growth in the coming months.

Investors should keep an eye on XRP’s price action around key resistance levels and monitor whale activity for further signs of accumulation. If the current trends continue, XRP might break past its immediate barriers, paving the way for even higher targets as we head into 2025.