XRP's price movement today has been influenced by a combination of profit-taking and market valuation concerns. The Market Value to Realized Value (MVRV) ratio surged to 217% on Tuesday, indicating that XRP might be overvalued in the short term. This has led to increased profit-taking among long-term holders, who realized over $1.5 billion in profits last week. Such behavior is typical after a rally and doesn't necessarily signal a shift in long-term sentiment. Ripple's announcement of investing in the newly rebranded Bitwise Physical XRP ETP also played a role in recent price dynamics, although today's focus has been more on the potential for a market correction due to the high MVRV ratio.
Despite the positive news of Ripple's investment in the Bitwise Physical XRP ETP, the overvaluation concerns have overshadowed the potential bullish sentiment. Brad Garlinghouse, CEO of Ripple Labs, noted the growing global demand for crypto-backed investment offerings, which could drive future demand for XRP. However, the immediate market reaction has been cautious, with investors wary of the high valuation levels indicated by the MVRV ratio.
XRP's price has seen a slight decline of 0.36% today, settling at $1.4674. The cryptocurrency reached a high of $1.4830 and a low of $1.4552 during the day.