Several indicators are showing that now might be a great time to accumulate XRP and Dogecoin (DOGE), as momentum gradually builds towards a future rally.
XRP buy signals
The first is the 365-day Market Value to Realized Value (MVRV) ratio, which for XRP currently sits at 0.92.
Note that this on-chain metric is used to determine whether an asset’s current price is overvalued or undervalued based on its historical cost basis. As an asset’s valuation peaks, the compelling logic is to sell, whereas a declining valuation suggests the opposite.
At 0.92, the indicator shows XRP is extremely undervalued due to capitulation. This, however, presents a prime macro accumulation zone since there is less risk of a sell-off.
Supporting this is the recent day’s 59.37% spike in transactional volume on the XRP Ledger. This, in addition to Bitcoin’s rise to near $83K, caused prices to break beyond the $1.25 support to a current price of $1.34.
Should XRP maintain this momentum, the rally could extend to the $2 price (+49%).
Dogecoin buy signals
For Dogecoin, the 365-day MVRV ratio sits at an even lower 0.74, presenting an even better purchase deal. Supporting this is the TD Sequential, which recently presented a buy opportunity near $0.081. Previously, a similar signal at this price led to an 18.74% rally.
At press time, DOGE has gained 2.70% in the day to trade at $0.0817.
Nonetheless, the $0.0813 zone is currently the heaviest resistance zone between DOGE’s current price and $0.2144 on the URPD chart. So, while breaking beyond this area ignites hope, it is also not a guarantee that buyers will maintain defense.
Source: Ali Charts
Comparison with Bitcoin, Ethereum and Chainlink
According to crypto intelligence and analytics platform Santiment, Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK) sit at a much more neutral position, with their 365-day MVRV values ranging between 0.97 and 1.04. This means the average investor of these cryptocurrencies is in a near break-even position, with less risk for aggressive profit-taking or dumping.
Source: Santiment
As compared to these three crypto assets, XRP and DOGE present a much better buy opportunity with the potential for higher profits.
Was this writing helpful?
Story Ends Here
Read the Next News