The broader cryptocurrency market is experiencing heightened volatility, causing XRP’s price to retest support levels such as $1.33. With the altcoin experiencing steady downside movement, this move has introduced serious pressure on investors and traders as they endure losses from their positions.
Waning XRP Price Movement Intensifies Pressure On Traders
XRP traders are experiencing pressure due to the asset’s protracted sideways price movement, which is putting pressure on both the spot and derivatives markets. With its inability to create a clear directional breakout, traders are caught between waning momentum and uncertainty about the market’s future course.
This pressure has increased over the past month, making this period a critical one for the leading altcoin. Data from Santiment, a popular on-chain data analytics platform, shows the average XRP trader that has been active in the past 30 days is down a whopping -47%. At the same time, many traders have been selling their coins at the bottom, increasing the volatility across the XRP market.
In the past, the Market Value to Realized Value (MVRV) average trading returns have remained average out to 0%, making the current period an extreme undervalued zone for XRP. The MVRV chart on the 30-day timeframe is currently showing a decline to its lowest level since December 2020, suggesting that fear and frustration among traders have reached rare extremes that have historically led to strong rebounds.
Despite the major price retracement that has caused the altcoin to lose over half of its market value since last summer, Santiment highlighted that optimism is still present among patient investors. This bullish sentiment is driven by regulatory progress, Exchange-Traded Funds (ETFs) speculation, and Ripple’s long-term adoption narrative.
Santiment drew attention to XRP’s massive rally in late 2024 and early 2025, which left many traders buying near local tops before momentum cooled off. However, repeated selling pressure has pushed many short-term traders deeply underwater since then.
When MVRV moves deeper into negative territory, it is often caused by retail traders giving up, creating conditions where even small positive catalysts can trigger strong rebounds. While weak MVRV readings do not guarantee a reversal, they typically signal that the majority of panic selling has already happened and downside risk becomes more limited relative to potential upside.
A Final Flush For The Altcoin
Despite falling sharply over the past few months, this downside performance does not seem to have come to an end yet, as XRP may witness one last drawdown. After examining its price action on the 4-hour chart, CasiTrades has predicted a pullback before any upward attempt.
Over the past few days, the altcoin has continued to reject below the major consolidation pattern. As seen on the chart, XRP has spent over 4 months trying to break past the $1.65 resistance. Furthermore, the longer this fails to reclaim the level, the more likely it becomes clear that a final flush will take place into the lower macro supports.
When this happens, the next key supports are $1.10 and $0.87. CasiTrades expects the recovery to occur after these macro supports have been tested aggressively. Meanwhile, the first true sign of that shift will be the altcoin reclaiming $1.65 and turning it into support.
Featured image from Adobe Stock, chart from Tradingview.com
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