XRP (Ripple), First Surrender Signal in 12 Years... "If We Just Get Through This, There Will Be a Rebound"

▲ XRP/ChatGPT generated image

XRP has sent an unprecedented surrender signal in its 12-year trading history. As short-term and long-term investor returns simultaneously hit historical lows, the market stands between fear of further decline and anticipation of a rebound.

According to U.Today, a cryptocurrency specialized media outlet, on July 3 (local time), the XRP Ledger showed a massive macro surrender signal. Santiment data analyzed that the average trading return of XRP plummeted to an unprecedented pain zone. U.Today reported that as speculative overheating has largely been eliminated, the possibility of a future relief rally has increased.

The key indicator is Market Value to Realized Value (MVRV). Santiment charts show the 30-day and 365-day MVRV ratios of the XRP Ledger as a long-term trend. The red dotted line at the top indicates strong sell zones where market excitement previously surged to extremes. Conversely, the green dotted line at the bottom represents strong buy zones.

Currently, both indicators are well below past buy zones. XRP's 30-day MVRV recorded -45.34%. This figure shows how much pressure short-term buyers are under due to losses. The 365-day MVRV also fell to -47.13%. This means that long-term holders are also not out of the loss zone.

U.Today pointed out that when looking at both periods together, XRP has never recorded a lower average return. However, a historical low does not immediately mean a price bottom. If the overall cryptocurrency market faces macroeconomic pressure, XRP's price could fall a bit further. Nevertheless, this indicator is interpreted as a signal that there is room for a rebound.

Market sentiment has also shifted to extremes. Santiment analysts diagnosed that the fear and frustration within the XRP community have become excessively high. U.Today reported that the most profitable long-term buying zones are generally formed when investors experience the maximum level of financial distress.

Institutional demand remains a separate variable. While net outflows continued from Bitcoin (BTC) and Ethereum (ETH) ETFs, XRP ETFs showed robust institutional demand. U.Today presented the simultaneous appearance of extreme loss indicators and institutional demand as factors supporting the possibility of an XRP rebound.

[Article Key Summary]

-XRP's 30-day MVRV dropped to -45.34% and its 365-day MVRV to -47.13%, recording historically low average returns.

-Santiment analyzed that the fear and frustration among XRP investors have become excessively high, and speculative overheating has largely been eliminated.

-While fund outflows continued from Bitcoin and Ethereum ETFs, XRP ETFs showed robust institutional demand.

*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.*