XRP may be showing some of its weakest sentiment in years, but analysts believe that extreme pessimism could be setting the stage for a potential rebound.
Over the past 24 hours, XRP gained around 5%, allowing it to recover above the $1.10 level. Despite this short-term bounce, the token remains more than 50% below its price from a year ago.
Recent on-chain data suggests that the prolonged downturn has pushed investor sentiment and holder performance to historic lows.
According to Santiment, XRP holders are currently seeing some of the worst average returns in the asset’s history. The token’s 30-day MVRV has dropped to -45%, while its 365-day MVRV sits at -47%, indicating that both short-term and long-term holders are deep in losses.
For the first time in XRP’s nearly 12-year history, both groups of holders are experiencing record-low average returns. This reflects an environment of elevated fear, frustration, and widespread market exhaustion.
Santiment noted that further downside is still possible, especially if the broader crypto market weakens. However, from a risk-reward perspective, current conditions may present a relatively attractive accumulation zone since much of the downside appears to have already been absorbed by existing holders.
Historically, such deeply negative MVRV readings have often aligned with stronger long-term market setups.
Adding to the bullish case, crypto analyst Ali Martinez reported that XRP’s SuperTrend indicator has triggered its first buy signal since mid-June. He noted that the previous buy signal was followed by a 14% rally, while the same indicator accurately identified the last two major pullbacks of 19% and 16%.
Network activity is also improving. Martinez highlighted a sharp rise in daily active XRP addresses, which climbed from 23,000 on June 14 to nearly 40,000, suggesting stronger user participation and growing on-chain engagement.
Institutional interest has also remained steady. Spot XRP ETFs in the U.S. recorded more than $59 million in net inflows during June. After two straight days of outflows, the funds returned to positive territory on July 3 with $6.55 million in fresh inflows.
Data from SoSoValue showed that Bitwise contributed the largest share of those inflows, highlighting continued institutional appetite for XRP despite recent volatility.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic
