XRP up 8% as record holder losses hit extreme MVRV levels
XRP is up about 8% over the past week to around $1.14, even as on-chain data shows holders are at their most underwater levels on record.
Santiment highlights XRP’s MVRV (market value to realized value) ratios as a proxy for how deep unrealized losses remain. The 30-day MVRV is near -45% and the 365-day MVRV is near -47%, suggesting both recent buyers and long-term holders are deeply in the red.
Some traders interpret this “capitulation” phase as a potential contrarian entry point, where selling pressure from weak hands may be exhausted and coins are absorbed by buyers. Santiment stresses it is not a definitive price bottom.
Key trader takeaway: XRP’s rebound alongside extreme MVRV implies selling pressure may be largely spent, but further downside is still possible if the broader market weakens or if new demand fails to follow through.
The article also links the broader market context to a capitulation-and-absorption setup recently flagged in BTC positioning, referencing large bitcoin wallet activity amid record ETF outflows.
Neutral
This news is best read as a mixed signal for XRP rather than a confirmed bottom. The bullish part is that XRP’s extreme negative MVRV levels (30-day ~-45%, 365-day ~-47%) imply holders are experiencing record unrealized losses—often near phases where selling pressure from weak hands can become exhausted. The fact XRP still managed to rise ~8% to around $1.14 suggests some absorption/buying is already happening.
However, the article is careful that MVRV measures “how washed out” positions are, not the exact timing of a reversal. In past crypto episodes, markets frequently stay in a “stretched losses” regime while prices chop sideways or drift lower before trend confirmation. That means traders should watch whether demand persists after the rebound and whether broader market risk-off continues.
So the immediate impact is likely neutral: it may attract contrarian bids and reduce marginal selling pressure, but it does not remove the downside tail if the macro/market weakens. Over the long run, if extreme capitulation transitions into sustained accumulation, it could improve risk-reward; if not, the rebound could fade.