XRP Investors’ Average Return Falls 47% as Selling Intensifies, Price Holds Up

XRP has entered an extreme capitulation phase after months of mounting unrealized losses and heavy selling pressure, according to an analysis cited by AMBCrypto.

Santiment data cited by AMBCrypto on May 28 showed XRP’s 30-day market value to realized value, or MVRV, had dropped to about -47%. That is the lowest level since December 2020.

The decline in MVRV indicates that average returns for investors who bought XRP recently have deteriorated sharply. XRP’s market capitalization has fallen by more than half from its peak late last year.

AMBCrypto said repeated price corrections had fueled stop-loss selling by short-term investors and significantly weakened sentiment among buyers who entered near the peak. It added that similar stretches of extreme losses in the past were often followed by easing selling pressure and a rebound.

On Binance, aggressive market selling has also surged. CryptoQuant data showed Binance’s cumulative net taker volume for XRP fell to about negative $83 million as of May 23. That compares with roughly negative $58 million in early April, signaling even stronger selling pressure.

Even so, XRP rebounded to around $1.35 without another sharp leg lower. AMBCrypto said that was a sign the market was absorbing a substantial share of panic-driven selling.