XRP holders are deeper, on average, than ever, according to on-chain data that some traders are treating as a contrarian bottom 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 goes below zero, the typical holder suffers losses. XRP’s 30-day MVRV is around -45% and its 365-day version around -47%, so both recent buyers and those who have held it for a year are in the red.
Combined, the two are at their lowest level in XRP history, analytics firm Santiment said in a Friday post.
That describes a capitulation, the phase in which holders endure large unrealized losses and weaker hands are sold 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 usually appear when the crowd is feeling the most pain,” the company wrote, stating that so many downsides have already been taken that adding here carries less risk than usual, although it notes that the price could still fall further if the broader market weakens.
XRP has risen even as that reading remains low. The token is up about 8% in seven days to around $1.14, according to data from CoinDesk, among the strongest majors of the week.
