Summary
- Santiment said XRP’s MVRV readings of -45% and -47% show holders’ average unrealized losses have reached a record high.
- The report said selling by loss-making holders has largely been absorbed by the market, leaving new buyers in a zone with improved risk-adjusted expected returns.
- Santiment added that XRP prices could face further declines if broader market weakness continues.
Forecast Trend Report by Period
XRP holders’ average unrealized losses have widened to the deepest level on record.
CoinDesk reported on July 4, citing analytics firm Santiment, that XRP’s MVRV, or market value to realized value, stood at -45% and -47%. Both readings are the lowest on record.
MVRV is an on-chain metric that compares the current market price with investors’ average purchase price. A reading below zero means the average holder is underwater. Investors who bought within the past month and those who have held for more than a year are both sitting on steep paper losses on average.
Santiment said the figures should not be interpreted as a simple bearish signal. In its report, the firm said a substantial amount of selling by loss-making holders has already been absorbed by the market, leaving new buyers with a better risk-reward setup than in the past. It added that XRP could fall further if weakness across the broader market continues.
As of 4:20 p.m. on July 4, XRP was trading at $1.13, up 3.37% from a day earlier, according to CoinMarketCap.
Uk Jin
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