XRP surged 8% in early trading after Santiment reported that the token’s 30‑day and 365‑day Market‑Value‑to‑Realized‑Value (MVRV) ratios fell to –45% and –47%, respectively. These figures represent the deepest underwater positions holders have seen in the token’s history.
MVRV is a commonly used on‑chain metric that compares the market value of a cryptocurrency to the amount of money that has been realized by its holders. When MVRV is negative, it indicates that holders are, on average, losing money relative to the current market price.
The sharp decline in MVRV has drawn attention from traders who interpret such extreme losses as a potential buying opportunity. The logic behind this contrarian view is that when a large portion of holders are deeply underwater, the market may be undervaluing the asset, creating a favorable risk‑reward profile for new buyers.
However, the data comes from Santiment, a blockchain analytics firm, and the interpretation of MVRV levels is not a guarantee of future price movement. Market sentiment, regulatory developments, and broader macroeconomic factors can all influence XRP’s trajectory.
As of the latest update, XRP’s price continues to show resilience, but investors should remain cautious and consider the broader context before making any decisions.