Investor sentiment around XRP has deteriorated sharply, with on-chain data showing that a majority of holders are now sitting on significant losses.

Recent metrics indicate that more than half of XRP’s circulating supply is currently underwater, amid sustained bearish pressure that has weighed on the asset in recent months.

In this line, the average wallets active on the XRP Ledger over the past year are down approximately 41% on their holdings, according to onchain data retrieved from Santiment by Finbold on April 6. 

This marks the lowest level of the Market Value to Realized Value (MVRV) ratio since the FTX collapse, a period widely associated with extreme stress across the cryptocurrency market. The decline in profitability is further reflected in distribution data, which shows that only 43.4% of XRP’s total supply remains in profit.

Daily realized losses have surged, at times reaching $110 million, while persistent selling pressure has kept XRP from staging a meaningful recovery despite broader market stabilization.

What’s next for XRP price

Despite this backdrop, deeply compressed MVRV levels have historically signaled late-stage bearish cycles. As more holders remain in losses, selling pressure tends to ease, creating room for gradual accumulation by long-term investors.

Historically, such conditions have preceded strong rebounds, with past periods of depressed MVRV followed by significant recoveries. Current data suggests a potential 63% upside if market sentiment improves and demand returns.

Interestingly, this comes at a time when XRP is showing a growing disconnect between network activity and market performance.

As reported by Finbold, on-chain data indicates that XRP addresses increased from 7.9 million at the start of 2026 to about 8.1 million as of April 6. 

This steady rise points to ongoing user adoption and network expansion. However, this growth has not translated into price gains, with the asset’s muted performance largely driven by the absence of asset-specific catalysts, leaving XRP to move in line with broader cryptocurrency market trends.

XRP price analysis 

By press time, XRP was trading at $1.31, down 2.5% over the past 24 hours, while on the weekly timeframe, the asset was lower by less than 0.1%.

Overall, XRP has been range-bound since late February, testing critical support near $1.28, a level that has held firm through multiple selloffs.

A decisive break below this zone could open the door to deeper corrections toward $1.20 and $1.15, while a sustained move above $1.36 may signal short-term strength toward $1.45 and potentially $1.60.