XRP Takes Lead in Closing Discount Over Dogecoin

The cryptocurrency market has seen significant price fluctuations for XRP and Dogecoin over the past year. According to MVRV data, holders of both cryptocurrencies have lost money, with XRP down by an average of 11.8% and Dogecoin down by a more substantial 19.3%. This indicates that investors in both coins are currently underwater.

However, while XRP's recent price surge was largely driven by organic buying activity, Dogecoin's gains were primarily fueled by leveraged whale trades. These types of trades profit from price increases and typically use leverage, which can rapidly intensify losses if prices fall too much.

The MVRV reading is a measure of a cryptocurrency's market value against its realized value. When the reading is negative, it indicates that the average price at which transactions occurred in the last year was higher than the current market price. This can be seen as a potential buying signal, but only if fresh investments come in to absorb the remaining selling pressure.

On the other hand, XRP has a clear advantage with recent reports showing that U.S. spot XRP ETFs collected around $75.6 million in net inflows between September 22 and 25. These funds own the coins outright, facing no risk of margin calls that can trigger forced sales during market downturns.

Considering these factors, our analysis suggests that XRP is more likely to close its discount first due to its smaller gap to fill and stronger backing from genuine buyers.