TLDR:XRP 30-day MVRV ratio has fallen to its lowest level recorded since December 2020 cycle lows.Average traders active in the past 30 days are currently holding unrealized losses of around -47%.Crowd sentiment dropped to 1.1 bullish comments per bearish comment, placing XRP in the FUD zone.Historically, deeply negative MVRV readings have preceded strong rebounds as panic selling slows down.XRP is flashing signals that seasoned traders recognize from past market cycles. On-chain data shows the asset trading in deeply oversold territory, with both sentiment and return metrics reflecting widespread frustration among short-term holders. At a current price of $1.35, XRP has shed more than half its market value since last summer’s peak.Average Trader Returns Drop to Multi-Year LowsThe 30-day MVRV ratio for XRP has fallen to its lowest reading since December 2020. This metric tracks the average unrealized profit or loss among traders active within the past month. Currently, those traders are sitting on losses averaging -47%, a figure that reflects deep market pain.According to Santiment Intelligence, MVRV ratios have historically reverted to 0% over time. This pattern means prolonged negative readings often precede recovery phases. The current reading suggests many short-term holders are capitulating or have already sold. The average XRP trader that has been active in the past 30 days is down a whopping -47% with many selling at the bottom. Historically, MVRV’s (average trading returns) will always average out to 0%, making this current time an extreme undervalued zone for $XRP. The chart shows… pic.twitter.com/a0s4ObRpQu— Santiment Intelligence (@SantimentData) May 26, 2026Much of this pressure traces back to XRP’s aggressive rally in late 2024 and early 2025. Many retail traders entered positions near local tops during that run-up. As momentum faded and repeated selloffs followed, those buyers found themselves deeply underwater.Santiment noted that deeply negative MVRV zones tend to emerge when retail participation is exhausted. When that happens, even modest positive catalysts can spark sharp recoveries. The data does not guarantee a reversal, but it does point to reduced downside risk relative to potential upside.Crowd Sentiment Drops Into FUD ZoneAlongside the on-chain data, social sentiment around XRP has also turned sharply negative. Santiment reported that the ratio of positive to negative commentary has dropped to just 1.1 bullish comments per bearish comment. That reading places XRP firmly in what analysts call the “FUD zone.” XRP’s crowd sentiment has swung sharply negative again, with the ratio of positive to negative commentary dropping to just 1.1 bullish comments for every 1 bearish comment. Historically, this kind of fear and skepticism has often acted as a contrarian signal for XRP’s price.… pic.twitter.com/KGubO783yE— Santiment Intelligence (@SantimentData) May 25, 2026Historically, this level of crowd pessimism has acted as a contrarian indicator for XRP’s price. When fear dominates social media, weak hands have typically already exited their positions. That reduces active selling pressure and often sets the stage for stabilization or a bounce.The reverse dynamic plays out during periods of heavy optimism. When the positive-to-negative ratio climbs deep into “FOMO zone” territory, it usually marks a period where buyers are overextended. Those conditions tend to align with local price tops rather than sustainable rallies.Despite the current negativity, some investors remain patient. Regulatory developments, ETF speculation, and Ripple’s broader adoption narrative continue to hold attention among longer-term holders. These factors have not driven immediate price recovery, but they remain part of the broader market conversation around XRP’s trajectory.The post XRP MVRV Sinks to 2020 Lows as Average Trader Losses Hit -47% and Fear Grips the Market appeared first on Blockonomi.