XRP price sentiment has entered a “FUD Zone” of high fear, a condition that has historically preceded market rebounds, according to Santiment data. Short-term XRP traders are now averaging significant unrealized losses of nearly 47%, while historical patterns suggest the asset may be in a long-term accumulation phase.
Fear surrounding the XRP price has reached its highest level in nearly three weeks, according to fresh data shared by Santiment and market watcher CW. On May 25, the social media bulls-bears ratio dipped, pushing XRP into what analysts call the “FUD Zone.”
Historical data shows that periods of extreme investor fear toward XRP have often had a contrary implication. Previous falls into this zone have typically been followed by rebounds due to reduced selling pressure.
Data from Santiment Intelligence shows short-term XRP traders are now averaging unrealized losses of nearly 47%. The 30-day Market Value to Realized Value (MVRV) ratio is now lower than it was in December 2020, which some label an “extreme opportunity zone.”
The MVRV ratio indicates how much traders are winning or losing on paper. Extremely low ratios predominantly represent fear and despair among retail investors, a sentiment seen at previous market bottoms.
Analysis of historical cycles suggests XRP may currently be in an accumulation phase rather than at a market peak. The cryptocurrency’s current MVRV ratio is significantly negative, supporting this perspective.
Despite the severe unrealized losses for traders, the XRP price has held near $1.35 without a major breakdown. This discrepancy between trader profitability and price action indicates minimized selling from those exiting the market.
