XRP Capitulation Zone? Data Shows Average Wallet Down by 47%

According to Santiment, the average XRP trader active in the last 30 days is marking negative returns. This class of traders is down about 47%, with many selling at the bottom.

Accompanying Santiment’s tweet was a chart of the 30-day and 365-day MVRV for XRP.

The chart shows that XRP’s 30-day MVRV has fallen to its lowest level since December 2020, suggesting that fear and frustration among traders have reached rare extremes that have historically preceded strong rebounds.

XRP’s 30-day MVRV is currently at -47%, which coincides with an extreme opportunity zone. Santiment noted that historically, MVRV, which refers to average trading returns, will always average out to 0%, making this current time an extreme undervalued zone for XRP.

Here’s the catch

The deeply negative MVRV zone seen for XRP at the moment tends to appear when retail traders have largely given up, creating conditions where even small positive catalysts can trigger strong recoveries.

While weak MVRV readings alone do not guarantee a reversal, they often signal that most panic selling has already occurred and downside risk becomes more limited compared to potential upside.

Despite the major price drop that has seen XRP lose over half its market value since last summer, patient investors still have optimism surrounding regulatory progress, ETF speculation, and Ripple’s long-term adoption narrative.

XRP rallied significantly in late 2024 and early 2025, which left many traders buying near local tops before momentum cooled off. But since then, repeated selloffs have pushed many short-term holders deeply underwater.

XRP news

The Fix amendment in XRP Ledger version 3.1.3, fixCleanup3_1_3, a collection of fixes for NFTs, Permissioned Domains, Vaults, and the Lending Protocol has just been activated.

The XRP Ledger Foundation published a new XRP Ledger Standard for AMM v2. New pool curves StableSwap and Concentrated Liquidity increase capital efficiency and stabilize pricing for stablecoins, FX markets, RWAs and beyond on the XRPL DEX.