Key facts
- XRP holders are currently experiencing record unrealized losses, with MVRV ratios near -45% to -47%.
- Analytics firm Santiment suggests this phase of 'maximum pain' for holders could present a favorable risk-reward scenario.
- Despite the negative on-chain metrics, XRP has gained about 8% in the past week, trading around $1.14.
- The price increase indicates that selling pressure from holders with unrealized losses may be diminishing.
XRP holders are currently facing record unrealized losses, with both 30-day and 365-day MVRV ratios hovering around -45% to -47%. This indicates significant pain for both recent and longer-term buyers. According to analytics firm Santiment, this phase of capitulation, where weaker hands sell out, may present an attractive risk-reward entry point for new buyers. However, the firm cautions that this is not a definitive price call and that XRP could still decline if the broader market weakens.
Despite these depressed on-chain metrics, XRP has seen a notable increase of approximately 8% over the past week, reaching around $1.14. This price movement suggests that selling pressure from holders with unrealized losses might be largely exhausted. Traders are now observing whether new buyers will continue to step in. The MVRV ratio, which compares XRP's current price to the average price at which its supply last moved, shows that the typical holder is currently at a loss. The current readings are reportedly the lowest in XRP's history, a situation that some traders interpret as a contrarian signal for a potential market bottom.