XRP traded lower on Wednesday as a broader crypto market downturn, led by Bitcoin, triggered a wave of forced liquidations. According to CoinGlass data, roughly $930 million in long positions were wiped out over the past 24 hours, intensifying downside pressure across major digital assets. The downturn followed President Trump’s renewed denial of reports suggesting a U.S.–Iran deal, further dampening market sentiment.
Notably, the decline has pushed XRP into extreme fear conditions, with Santiment data showing that roughly 47% of holders have entered an undervalued zone, reflecting growing investor stress and weak short-term confidence. Santiment also highlighted growing signs of capitulation among XRP traders, noting that the average XRP trader active within the last 30 days is currently sitting at a loss of approximately 47% — one of the deepest negative readings recorded in recent years.
Santiment’s Market Value to Realized Value (MVRV) data shows XRP’s 30-day MVRV ratio has dropped to its lowest level since December 2020, a period that historically preceded significant market recoveries. The deeply negative MVRV reading suggests that many retail traders have already exited positions in panic, potentially reducing further downside pressure. Historically, periods where traders are heavily underwater have often created favorable conditions for market rebounds, particularly when accompanied by positive catalysts.
Despite the bearish conditions, some analysts believe XRP could be nearing a meaningful turning point. Analyst CasiTrades noted that XRP continues to face repeated rejection below a key consolidation range, with $1.65 acting as major resistance. Referencing the Elliott Wave pattern, she identified $1.10 and $0.87 as key macro support zones if weakness persists, adding that any drop into those levels could set the stage for a strong recovery. “The Clock Is Ticking for XRP… I expect the recovery after macro support test to be violent. The first real sign of that shift will be XRP reclaiming $1.65 and turning it into support,” she said.
Analyst Crypto Patel pointed to a long-term two-week timeframe bullish accumulation zone, noting that investors are already positioning between $1.00–$1.20, with deeper buy zones cited at $0.85–$0.70 and $0.65–$0.50. He described current conditions as a long-term accumulation phase, with price targets stretching toward $3, $7, and $10.
Separately, analyst Crypto Insight UK suggested that while Elliott Wave interpretations remain flexible, broader structural patterns still support a long-term bullish thesis, noting he may begin scaling out of positions in the $8–$12 range depending on market conditions.
At press time, XRP was trading at $1.29, down 2.76% over the past 24 hours.
Source: XRP Enters Extreme Fear Zone as Analysts Eye Potential Rebound