XRP, 30-day Loss Rate 47%...A Spark for a Major Reversal in the Investor Capitulation Zone

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An on-chain warning has emerged, indicating that the market has entered an extremely undervalued zone, as the average loss rate for XRP short-term traders deepened to 47%.

According to U.Today on May 27 (local time), Santiment reported that the average investor who traded XRP over the past 30 days recorded a loss of approximately 47%. Santiment analyzed that a significant number of investors are selling near the bottom, and XRP's 30-day Market Value to Realized Value (MVRV) has fallen to its lowest level since December 2020.

The chart released by Santiment presented both XRP's 30-day Market Value to Realized Value and 365-day Market Value to Realized Value. Santiment explained that Market Value to Realized Value, which represents the average trading profit/loss, has historically converged to 0%, and the current level of -47% corresponds to an extremely undervalued zone.

U.Today reported that XRP's deeply negative Market Value to Realized Value zone tends to appear when retail investors have largely capitulated. In such an environment, even a small positive catalyst can trigger a strong rebound, but it added that a price reversal cannot be definitively concluded solely based on a weak Market Value to Realized Value.

However, U.Today explained that this indicator is often interpreted as a signal that a significant portion of panic selling has already occurred. XRP experienced a sharp decline with its market value more than halving since last summer, and many short-term holders who bought near the peak after a strong rally from late 2024 to early 2025 remain in a loss position.

On the XRP Ledger, the fixCleanup3_1_3 amendment, a revision for version 3.1.3, has been activated. This amendment includes enhancements related to NFTs, Permissioned Domains, Vaults, and Lending Protocols, and the XRP Ledger Foundation has also unveiled new standards for AMM v2. The new standards focus on increasing capital efficiency and price stability for stablecoins, forex markets, real-world assets, and XRPL DEX through StableSwap and Concentrated Liquidity pool curves.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*