XRP Plunges 5.7% - Enters Undervalued Territory as Analysts Spot Opportunity
XRP just hit what technical analysts call the 'buy zone'—a 5.7% drop that's flashing oversold signals across the board.
The Undervalued Trigger
That percentage isn't just a random dip. It's the precise threshold where historical data suggests the asset has been punished more than its fundamentals warrant. The charts are screaming one thing: mean reversion is coming.
Market Mechanics at Play
This kind of move shakes out weak hands—retail panic sellers and over-leveraged positions get liquidated, transferring tokens to stronger, patient wallets. It's the classic washout before a potential leg up. Meanwhile, traditional finance watches from the sidelines, still trying to figure out if crypto is an asset class or just a high-risk bet for their quarterly reports.
The cynical take? Wall Street will call it risky until their own desks finish accumulating at these levels. For the rest of us, it's a moment to watch the order books, not the headlines.
XRP, ADA, LINK and ETH are currently undervalued
Santiment’s comparable readings for the undervalued assets lists chainlink with a 30-day MVRV near minus 9.5%, Cardano 7.9%, Ethereum 7.6%, and XRP firmly in the middle at 5.7%. While these metrics could signal a reduced immediate risk, the Ripple token’s price behavior has not given buyers any confidence to step in.
XRP has shed 48% from its $3.66 high recorded last July, returning to a one-year central demand zone. Historically, this region has been the launch base for a push to the upside, evident in the June 2025 rally that carried XRP to its $3.66 peak.
Much to the dismay of holders, the token is pressing the lower boundary of the zone NEAR $1.85 this time, after an initial bounce attempt beyond $2.4 failed during December 2025 to the last week of January.
TradingView’s technical indicators show signs of slowing downside pressure, but there’s not much to call a reversal to the upper $2 level. Between December 31 and January 20, XRP formed a hidden bullish divergence on the daily chart. The price printed a higher low while the RSI dropped to deeper lows, which indicated that sellers are losing control and that buyers may soon reassert themselves, as seen in previous cycles.
Yet, after the divergence appeared three weeks into the first month of the year, XRP’s price stalled and repeatedly failed to flip its fall below $2. As of the time of this publication, the coin had lost over 4% of its value over the last seven days, trading at $1.989.
The lack of follow-through could mean that while selling pressure may have eased, buyers were unwilling or unable to step in with sufficient force. As a result, XRP remained vulnerable near the lower end of its established range.
XRP exchange reserves go high, as ETFs start dumping
XRP reserves on crypto exchange Binance have climbed to approximately 2.74 billion tokens, the highest level since last November. The uptick in reserves comes after months of steady declines, culminating in a low of 2.63 billion XRP last month.
During November and December, large amounts of XRP were withdrawn from Binance into external wallets, which analysts believe were either for long-term holding or to reduce exposure to exchange custody risk.
The recent uptick in reserves could mean that some of those tokens are now returning to the exchange, purportedly to be sold or distributed, more doom for XRP holders hoping for the market’s intervention to kickstart a bull run.
Institutions have also started selling their holdings, as XRP spot exchange-traded fund products recorded net outflows of approximately $40 million in the week ending January 23.
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