XRP Price Correction Deepens as Trader Losses Hit 2020 Lows
XRP, the native cryptocurrency of the XRP ledge shows a notable downtick of 1.37% during Tuesday’s U.S. market hours to trade at $1.3. The continued correction in XRP price gains its momentum from the broader market as Bitcoin rejects at $78,000 again. This prolonged downswing has also pushed Ripple crypto holders deep into losses, signalling a classic capitulation pattern that historically bolstered a surge in buying pressure. Will XRP price extend its correction below $1.2, or are buyers preparing a push to $1.5?
XRP Trader Losses Hit Levels Not Seen Since Late 2020
XRP holders who entered the market over the past month are sitting on average unrealized losses of nearly 47%, according to Santiment data. The Market Value to Realized Value (MVRV) ratio for the cryptocurrency has plunged to its lowest point since December 2020, indicating a widespread capitulation from short-term traders.
This metric, which measures the average profit from recent traders, is now in deep negative territory after a dramatic drop from the 2024-2025 high. Since the peak of last summer, the XRP price has lost over 50% in value and has witnessed constant selling pressure from buyers who purchased near local highs. This has left many retail investors underwater, contributing to reduced market participation and heightened frustration.
Historically, MVRV readings have tended to revert toward neutral over time. Extreme negative zones like the current one have often coincided with periods of exhausted selling pressure, where the risk of further sharp declines diminishes and the potential for recovery increases if positive developments emerge.
While the short-term sentiment remains low, there are some investors who are maintaining their faith in Ripple, thanks to its enterprise growth, regulatory clarity, and approval of potential ETFs.
The configuration is a classic late-cycle one, with hefty losses among recent buyers giving any momentum shift a chance to see a big bounce. While reversals are never guaranteed, the depth of current negative returns suggests limited downside risk from panicked exits.
To summarize, XRP seems to be in a high-risk, high-reward scenario where the fear has made the environment undervalued, but continued progress will depend on tangible catalysts other than technicals.
XRP Price in Correction Could Seek Support at $1.12
In the last two weeks, the XRP price dropped from $1.55 to its current value of $1.33, registering a loss of 14.35%. Amid this pullback, the coin price gave a bearish breakdown from the support trendline of the triangle pattern.
This breakdown on May 19th signaled XRP’s bearish escape from a multi-month consolidation, suggesting a risk of prolonged correction in price. With sustained selling, the coin price could plummet another 4.17% to retest the immediate support at $1.27.
A further breakdown below this support will accelerate the market selling pressure and push Ripple cryptocurrency to the $1.12 floor. The coin price is currently positioned below the key EMAs (20, 50, 100, and 200), suggesting the path of least resistance for traders is down.
The short uptick in the momentum indicator ADX at 15 accentuates the renewed selling pressure in the market, reinforcing the risk of a prolonged downtrend ahead.
On the contrary, if the XRP price managed to rebound within the triangle range again, the aforementioned bearish thesis will be invalidated. Even if materialized, the XRP price will likely enter a sideways momentum before the buyers drive a sustainable push.
