XRP’s recent price slump is spilling over into sentiment on the network, with on-chain activity cooling sharply as investors pull back, according to market watchers.
Santiment’s on-chain metrics show a noticeable drop in active addresses on the XRP Ledger in recent sessions, signaling weaker user engagement. Over the past year, the average holdings of active XRP wallets have fallen by roughly 41%, underscoring a substantial decline in participation and capital committed to the network. Such pullbacks can reflect either a temporary pause after heightened interest or waning demand.
The analytics firm also flagged that XRP’s MVRV (Mean Value to Realized Value) has tumbled to its lowest level since the FTX collapse in November 2022 — a period that ushered in an extended bearish phase. MVRV tracks trader profitability versus realized costs, so this low reading suggests many holders are sitting on losses. Santiment says large negative average returns among traders imply buying now may carry “less risk than average,” noting the market looks like “blood in the streets” as competing traders are already severely underwater.
Some analysts are interpreting these signals as signs the downward trend could be stabilizing. Crypto X analyst AiMan wrote on X that XRP may be forming a bottom: the token is trading near $1.30 after reaching about $3.50 last year, and momentum indicators such as the RSI have moved into deeply oversold territory. Interest metrics, including Google Trends and social activity on X, have also collapsed — conditions that have historically accompanied market bottoms.
Macro tailwinds are also cited as potentially supportive: expectations of eventual rate cuts, easing geopolitical tensions, and fresh liquidity flowing back into risk assets could lift crypto markets. AiMan added that, with the broader crypto market cap near $2.3 trillion — still small relative to traditional markets — current prices could look like buying opportunities in hindsight, and he believes XRP may have already found its cycle low.
That said, the situation remains mixed: on-chain metrics point to reduced activity and investor caution, while technical and macro factors offer a possible floor. Traders and investors should weigh the data and risks accordingly as the market searches for clearer direction.
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