XRP and Dogecoin's Prices Plummet, But On-Chain Data Suggests Long-Term Potential

XRP and Dogecoin's prices have plummeted by around 8% in the past day, leaving traders wondering what's next. However, on-chain data suggests that these tokens may be entering a more favorable long-term setup as their average holders remain underwater.

A recent report from Santiment Intelligence highlighted a widening gap in the 365-day Market Value to Realized Value (MVRV) ratio across major cryptocurrencies. This metric measures the average profit or loss of traders who have held onto these tokens for over a year. Bitcoin, Ethereum, and Chainlink all sit slightly above zero, indicating that their long-term holders are in a modest unrealized profit position.

XRP's 365-day MVRV stands at around negative 11.75%, while Dogecoin's is even more dire at negative 19.26%. Historically, deeply negative MVRV readings have represented more favorable long-term setups because fewer holders are sitting on profits that could be realized through selling.

Despite the price weakness, institutional flows remain positive. Weekly spot XRP ETF inflows stood at $38.06 million as of September 23, while spot DOGE ETFs recorded $2 million in net inflows. This suggests that even as prices drop, investors are still confident in these tokens' long-term potential.

XRP network activity has also spiked recently, with a sharp increase in whale transactions worth at least $100,000. While this doesn't necessarily indicate accumulation, it shows large holders are repositioning as prices move higher. Network growth accelerated, too, with 3,647 new XRP wallets created.