XRP Holders Face Historic Pain: Buy Signal or Bear Trap?
XRP holders are drowning in losses, hitting a 12-year low according to Santiment. While some analysts see a technical buy signal flashing, others warn the broader trend remains firmly bearish. This puts XRP at a critical juncture, with bulls and bears locked in a brutal tug-of-war.
XRP trading returns have cratered, hitting historic pain levels unseen in the token's 12-year run. Santiment data shows the 30-day MVRV at -45% and the 365-day MVRV at -47%, the lowest combined reading ever, signaling unprecedented pain across holders. One analyst argues this extreme downside absorption makes buying here a lower-risk proposition. However, the structural trend remains a major red flag. XRP is still trading below its 20-week EMA, a historically bearish signal after cycle peaks, and some see patterns mirroring past March downturns. A technical buy signal from the SuperTrend indicator has flashed for the first time since mid-June, previously preceding a 14% rally. This indicator has a solid track record, correctly calling recent declines. Bulls are betting on this signal, but bears demand confirmation. XRP needs to decisively reclaim the $1.10 level and, more importantly, the 20-week EMA at $1.35 to validate any trend reversal. Failure to do so could see it break below $0.90.