Ripple’s XRP price has been struggling as the crypto market continues its downward trend. The Bitcoin price dropped below $90,000 earlier today, pulling most altcoins lower with it.
XRP is currently holding above the $2 support level, but it has experienced a decline of approximately 3% in the last day and 13% over the past week. The overall market sentiment is weak, leading many traders to adopt a cautious approach.
Santiment Data Suggests a Reversal Signal
According to Santiment, these periods of market weakness often present genuine opportunities. Their data indicates that wallets that acquired XRP within the last 30 days are now facing an average loss of 10.2%.
This situation signifies that short-term holders are currently experiencing losses, a historical pattern that often precedes strong rebound setups for the XRP price. Santiment has identified this as a “good buy zone,” emphasizing that major cryptocurrencies tend to perform best when the average trader returns dip into negative territory.
The MVRV Metric and Its Implications
A key metric being closely monitored is the MVRV (Market Value to Realized Value). This metric compares the current market price of an asset to the price at which holders last moved their tokens.
A declining MVRV indicates that a majority of holders are currently at a loss. The lower this metric falls, the greater the potential for a recovery. Santiment suggests that this metric can offer more reliability than simply observing support and resistance zones.
XRP's Performance Relative to Other Assets
Ripple’s XRP is not the only cryptocurrency in this position, but it has shown resilience compared to many others recently. Over the past 30 days, XRP has maintained its value better than Ethereum, Chainlink, and Cardano, despite these assets now being in “extreme buy zone” territory.
Bitcoin holders are also showing an average loss of 11.5%, suggesting a broader accumulation window is opening across the market.
Analyst Perspectives on Current Market Conditions
This outlook aligns with the views of several analysts. Coach JV recently commented that the XRP price trading near $2 presents a rare opportunity for long-term investors.
Income Shark further added that individuals who missed the opportunity to buy XRP under $2 might soon have another chance, noting that such dips are typically short-lived.
Potential Entry Point Amidst Market Volatility
Currently, the XRP price is situated in a clear “pain zone.” However, this is precisely why analysts are observing it closely. If the market stabilizes and buyer interest returns, this current dip could evolve into one of the most attractive entry points of the current cycle.