Santiment data shows XRP traders recording deepest average losses since 2020. XRP entered historical accumulation zone previously linked to major market recoveries. Ripple regulatory progress
Santiment has revealed that XRP traders are now sitting in one of the deepest loss zones recorded in recent years, with the platform pointing to a historical signal that previously appeared before explosive price recoveries.
According to Santiment, XRP’s 30-day MVRV ratio recently declined to nearly -47%, marking its lowest level since December 2020. The analytics platform explained that the indicator tracks average returns among traders active within the past month. The reading now suggests many XRP holders remain heavily underwater following months of sustained market weakness. Moreover, the latest decline pushed short-term trader sentiment into extreme fear territory as repeated corrections erased large portions of earlier gains.
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According to Santiment, XRP rallied aggressively during late 2024 and early 2025 before momentum weakened across the broader crypto market. Consequently, many traders entered positions near local highs before market pressure accelerated losses. The analytics firm stated that MVRV levels historically return toward neutral territory over time. Because of that pattern, deeply negative readings often emerge when panic selling begins slowing down.
Additionally, Santiment noted that similar MVRV conditions previously appeared before strong XRP recoveries. The current structure now resembles late 2020, when bearish sentiment dominated the market before XRP later rebounded sharply.
The chart shared by Santiment highlighted two major market regions tied to trader profitability. The upper zone represented periods where traders remained heavily profitable and increased selling activity. Meanwhile, the lower region reflected deep unrealized losses among market participants.
According to Santiment, XRP has now returned to the lower accumulation zone that historically appeared before aggressive recoveries. The analytics platform explained that these conditions usually develop when retail confidence weakens considerably.
The average XRP trader that has been active in the past 30 days is down a whopping -47% with many selling at the bottom. Historically, MVRV’s (average trading returns) will always average out to 0%, making this current time an extreme undervalued zone for $XRP. The chart shows… pic.twitter.com/a0s4ObRpQu
— Santiment Intelligence (@SantimentData) May 26, 2026
Furthermore, Santiment stated that heavily negative MVRV readings can create favorable conditions for stronger rebounds once selling pressure fades. Under those circumstances, even smaller bullish developments may trigger rapid price recoveries.
Besides the technical signal, long-term optimism surrounding XRP remains active among investors. Santiment pointed toward Ripple’s regulatory progress, continued XRP ETF speculation, and institutional adoption tied to the XRP Ledger ecosystem.
However, the analytics platform also clarified that weak MVRV conditions alone cannot confirm an immediate reversal. Bitcoin’s market direction, broader crypto sentiment, and macroeconomic developments remain major factors influencing XRP’s next move.
Santiment’s latest XRP data shows traders facing their deepest average losses since 2020, which is similar to MVRV conditions that historically appeared before strong XRP rebounds eventually followed.
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The post Santiment Reveals XRP Signal That Previously Triggered Explosive Price Rebounds appeared first on 36Crypto.
