XRP continues to trade within a tight range between roughly $1.30 and $1.38 after multiple unsuccessful breakout attempts.
As bearish sentiment intensifies, blockchain analytics platform Santiment believes XRP may be approaching a potential bottom zone.
XRP Traders Facing Heavy Losses
According to Santiment, the average XRP trader active over the last 30 days is currently sitting on losses of approximately 47%, with many investors reportedly selling during the recent market downturn.
The firm noted that XRP’s 30 day Market Value to Realized Value ratio, commonly known as MVRV, has fallen to its lowest level since December 2020.
MVRV is a metric used to evaluate the average profitability of traders, and historically the indicator tends to gravitate back toward neutral levels near 0%.
Santiment explained that XRP’s deeply negative reading suggests the asset may now be trading within an extremely undervalued range.
The decline reflects growing fear and frustration among traders after XRP erased more than half of its market value since last summer.
The analytics platform said many traders entered positions during XRP’s powerful rally in late 2024 and early 2025, only to face mounting losses after momentum weakened and repeated selloffs pressured short term holders.
Long Term Optimism Still Exists
Despite the ongoing decline, some long term investors continue to remain optimistic about XRP’s future.
Santiment pointed to several factors supporting bullish expectations, including hopes for further regulatory clarity, speculation surrounding a potential XRP exchange traded fund, and Ripple’s broader adoption narrative.
The firm added that extreme negative MVRV levels have historically appeared during periods when retail traders capitulate, often creating conditions where even small positive developments can spark strong price rebounds.
Fear surrounding XRP has also intensified across social media platforms.
According to Santiment, the ratio of bullish to bearish XRP comments has dropped to nearly 1.1 positive comments for every 1 negative comment, highlighting growing caution among traders.
The platform noted that similar periods of widespread fear and skepticism have historically acted as contrarian indicators for XRP, as weaker holders often exit during sharp corrections before prices stabilize or recover.
Speculative Activity Begins to Increase
At the same time, fresh data from CryptoQuant suggests speculative activity around XRP perpetual futures is beginning to rise again on Binance.
Although XRP continues trading near $1.34, CryptoQuant reported that the token’s volume imbalance reading climbed to around 0.54, indicating that perpetual futures trading volumes have increased significantly compared to quieter market periods.
The analytics platform said this signals renewed interest from traders opening short term leveraged positions.
CryptoQuant also revealed that XRP’s Z Score has risen close to 0.95, meaning trading activity is now approaching one full standard deviation above its normal average.
The firm added that the indicator spent a prolonged period in negative territory before recently turning positive again, suggesting that trader risk appetite may slowly be recovering alongside renewed speculative participation in the XRP market.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic
