XRP holders are on average more submerged than they have ever been, according to on-chain data that some traders are treating as a contrarian floor signal.
The reading comes from MVRV, or market value to realized value, a ratio that compares the price of XRP to the average price at which its supply last moved.
When it is below zero, the typical holder suffers a loss. XRP’s 30-day MVRV is around -45% and its 365-day version is around -47%, so recent buyers and those who have held the stock for a year are deep in the red.
Together, the two are at their lowest levels in XRP’s history, analytics firm Santiment said in a paper published Friday.
This describes a capitulation, the phase where holders suffer large unrealized losses and weaker hands sell to those willing to absorb the coins. Santiment is careful to call this a risk-reward point, rather than a price call.
“The best setups often appear when the crowd is experiencing maximum pain,” the company wrote, stating that so many drawbacks have already been accounted for that adding here carries less risk than usual, while noting that the price may fall further if the market as a whole weakens.
XRP has been climbing even though this reading remains depressed. The token is up about 8% over seven days to around $1.14, according to CoinDesk data, among the week’s strongest majors.
