During the weekend, on-chain analytics platform Santiment reported that more than 25.24 million XRP tokens were withdrawn from cryptocurrency exchanges in a matter of hours. This sudden shift came directly after a period of high-volume XRP inflows, highlighting a rapid change in investor strategies.
Intense exchange activity in XRP
Data from Santiment reveal that between May 29 and May 30, a total of 25.24 million XRP left major exchanges. This notable outflow followed one of the largest single-day XRP inflows of the year, which occurred just a day earlier on May 28, when 22.8 million XRP were deposited onto exchanges. In under 48 hours, the XRP market saw a combined movement of nearly 48 million tokens.
The figures indicate that these massive withdrawals took place shortly after XRP reached price lows, a period when many individual investors were offloading their holdings at the market’s bottom.
Price moves following selling pressure
The substantial XRP transfers on May 28 coincided with a period of low trading volume. Analysts note that investors moving these large amounts to exchanges sold their XRP at the lowest prices seen in the last 15 weeks, making split-second decisions amid heightened volatility. Following these trades, the price of XRP rebounded by approximately 5%, offering brief relief from the intense selling pressure in the market.
Santiment’s data show that, over the past 30 days, the average active XRP investor has suffered a 47% loss. The majority of holders decided to sell during the most recent downturn at the absolute lows.
On-chain analysis also points out that XRP’s 30-day Market Value to Realized Value (MVRV) ratio has fallen to its lowest since December 2020. This sharp drop coincides with a period of widespread fear and pessimism among investors.
Mini glossary: The MVRV ratio measures a cryptocurrency’s market value against the average price that investors paid. A low MVRV indicates that most investors are selling at a loss, which has historically been a potential signal for an impending recovery.
Sentiment sinks to extreme lows: Is a reversal ahead?
Santiment’s analysis of investor sentiment shows a dramatic turn toward negativity, with nearly one pessimistic comment recorded for every positive statement in the recent market commentary. This trend marks a peak in market anxiety and signifies intensifying waves of selling.
Historically, such extreme negativity among investors can often precede a price turnaround. Santiment points out that previous recoveries have tended to follow similar moments of widespread gloom in the XRP community.
Expectations for the price and technical perspectives
As reported in the news, at the time of writing, XRP had slid 0.33% over the past 24 hours, trading at $1.33. Crypto analyst Ali notes that the lower boundary of the ascending channel—around $1.34—serves as an important buying area. According to Ali, if XRP can hold above this level, the price may soon target $1.37 and even $1.40 in the near term.
