New on-chain data from Santiment shows that wallets active on the XRP Ledger over the past year are sitting on an average loss of 41%. That marks the weakest Mean Value to Realized Value, or MVRV, reading for XRP since the market shock tied to the FTX collapse in November 2022, pointing to broad pressure across current holders.
The data suggests the damage is not limited to one segment of the market. Santiment said both the 30-day and 365-day MVRV indicators remain firmly negative, which means many participants are holding XRP below their cost basis. Short-term traders are underwater, and longer-duration holders are in the same position. The strain has spread across a wide section of the network.
Negative MVRV Shows Most Active Holders Are Below Cost
MVRV is commonly used to measure whether investors are in profit or loss relative to their entry price, making it a useful gauge for market health and holder behavior. With XRP’s readings deep in negative territory, the signal is straightforward: a large share of active wallets remains under pressure, and profitability has yet to recover in a meaningful way.
Santiment also notes that heavy unrealized losses can change how market participants behave. When many holders are already at a disadvantage, they are often less willing to sell aggressively at those levels. That does not guarantee a rebound. It can, however, reduce the force of continued downside and leave the market in a slower stabilization phase even while sentiment stays weak.
Late-2022 Setup Offers Historical Context
Similar MVRV conditions appeared in late 2022, after a broader crypto downturn pushed XRP into what Santiment described as a prolonged undervaluation period. During that stretch, accumulation activity picked up as selling pressure eased. Within the following months, XRP went on to gain more than 60%.
Santiment framed the crypto market as a zero-sum environment, arguing that when most participants are already taking losses, the remaining downside often starts to narrow as selling momentum runs out. Deeply negative MVRV readings have often lined up with phases where risk begins to shift, even if any price recovery takes time and does not arrive immediately.
XRP Is Trading Near the Lower Edge of a Historical Range
The chart referenced by Santiment highlights threshold zones that have helped define market behavior in past cycles. Lower MVRV levels have typically matched accumulation ranges where buyers start to return gradually, while higher readings have tended to appear during profit-taking phases that come before corrections. XRP is now sitting close to the lower boundary of that historical range.
That leaves the token in a zone that has mattered before, though the next move still depends on demand returning, sentiment improving, and broader market support. For now, the data shows XRP holders are dealing with some of the deepest paper losses seen in recent years, while valuation metrics place the asset near a historically important accumulation area.