XRP investors who have been active over the past year are experiencing significant losses, with a key valuation metric falling back to levels last seen during the market turmoil surrounding the FTX collapse.
On Tuesday, XRP recorded another drop as it struggled to break above 1.31 dollars. Although it briefly moved past 1.35 dollars last week, those gains were quickly erased by a sharp pullback. A recovery attempt on Monday also failed to gain strong momentum.
Recent data indicates that the average long term returns for XRP traders have fallen to their lowest point since 2022.
Market pressure on XRP appears to be intensifying. According to Santiment, wallets active on the XRP Ledger over the past year are currently sitting on average losses of about 41 percent. This has pushed XRP’s MVRV ratio down to levels not seen since the collapse of FTX in November 2022.
Such deeply negative returns suggest that risk for new or additional XRP purchases may be lower, since many investors are already dealing with substantial losses. Santiment described the situation as a market environment filled with extreme pessimism.
Despite what could be seen as a buying opportunity, transaction data shows that users are steadily withdrawing funds from exchanges. Over the past month, withdrawals have exceeded deposits, leading to a clear net outflow. More assets are leaving trading platforms than entering them, even as the total number of transactions declines sharply. This signals weakening activity and a period of market stagnation.
Crypto analyst CasiTrades noted that XRP is showing signs of fatigue rather than strength, as it continues to trade within a narrow range. She pointed out that multiple timeframes still indicate a downward trend. Her outlook suggests an initial drop toward 1.13 dollars, followed by a short lived rebound, and then another move down toward the 1.08 dollar region.
After a phase of consolidation, she expects a further decline toward 0.87 dollars, near a major support level.
Investor interest in XRP exchange traded funds has also weakened. Spot XRP ETFs recorded their first monthly losses in March since launching in November, as global tensions unsettled financial markets. Rising oil prices increased uncertainty and pushed investors away from riskier assets, resulting in roughly 31 million dollars in outflows during the month.
The trend has continued into April. In just the first week, investors withdrew about 1.25 million dollars, indicating that demand remains under pressure.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
