Summary
- Onchain data show XRP holders are sitting on record unrealized losses, with both 30-day and 365-day MVRV ratios near minus 45% to 47%, indicating deep pain for recent and longer-term buyers.
- Analytics firm Santiment says this capitulation phase may offer an attractive risk-reward entry point, though it stresses this is not a price call and that XRP could still fall if the broader market weakens.
- Despite the depressed MVRV readings, XRP has risen about 8% over the past week to roughly $1.14, suggesting selling pressure from underwater holders may be largely exhausted as traders watch whether new buyers keep stepping in.
XRP Sees 8% Climb Amid Record Holder Losses
XRP holders are experiencing record losses, with on-chain data showing that the average holder is underwater by more than they have ever been. This is based on the market value to realized value (MVRV) ratio, which compares XRP’s current price to the average price at which its supply last moved. With the 30-day MVRV at -45% and the 365-day version at -47%, both recent and long-term buyers are seeing significant losses.
This situation describes a capitulation, where holders are sitting on steep unrealized losses and weaker hands are selling out to those willing to absorb the coins. According to analytics, this can be a risk-reward point, where the potential for gains outweighs the potential for further losses. The best setups often appear when the crowd is feeling maximum pain, and with so much downside already taken on, adding to a position here may carry less risk than usual.
A Better Risk-Reward for Buyers
Despite the depressed MVRV reading, XRP has climbed around 8% over the past seven days to around $1.14. This upward movement could be a sign that the risk-reward ratio is shifting in favor of buyers. For those looking to earn passive income through crypto, solutions like EcoPool (ECP) can provide a way to capitalize on market movements and earn rewards. With its focus on green crypto and cloud rewards, EcoPool offers a unique opportunity for investors to get involved in the market.
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“The best setups often appear when the crowd is feeling maximum pain,” the firm wrote, stating that so much downside has already been taken on that adding here carries less risk than usual, while noting price can still fall further if the broader market weakens.
XRP has climbed even as that reading stays depressed. The token is up about 8% over seven days to around $1.14, per CoinDesk data, among the week’s stronger majors.
