The XRP price key support faces a critical test, trading near the vital $0.48 level. Recent data from the on-chain analysis platform Santiment shows growing and sustained selling pressure. Investors are closely watching whether this psychological level can hold. The general market sentiment is leaning pessimistic, complicating the asset’s stabilization.
Technical analysis shows XRP recently broke an ascending trendline. This breakdown has intensified the selling action. Currently, the price is struggling to stay above $0.48. If this support fails, the next defense zone is located at $0.46. Technical indicators, such as the Relative Strength Index (RSI), are in bearish territory. The daily RSI shows a downward trend, suggesting sellers are in control of the short-term momentum.
Trading volumes also reflect this indecision. Although selling pressure is evident, volume has not exploded. This suggests steady selling rather than mass panic. However, the on-chain data is less optimistic. The MVRV (Market Value to Realized Value) metric at 30 days has dropped significantly. This metric compares the current price to the average acquisition price.
XRP’s MVRV Signals an Alert Zone
A 30-day MVRV below -2.7% is a warning sign. According to Santiment analysts, this indicates that short-term holders are currently underwater (at a loss). Historically, when this indicator drops so low, investor financial pain increases. This situation often precedes capitulation events. Capitulation occurs when investors sell en masse to stop their losses.
The $0.48 level is crucial not just for technical analysis. It has acted as psychological and accumulation support in previous cycles. Losing it could invalidate the bullish structure that was attempting to form. The relevance of this metric lies in its ability to measure sentiment. The digital economy relies heavily on investor confidence. Seeing recent holders at a loss discourages new buyers.
Are XRP Investors About to Capitulate?
The current scenario presents a high risk for the Ripple asset. If the XRP price key support at $0.48 gives way, the market’s reaction could be swift. Analysts are closely monitoring whale activity. Recent data shows slight distribution from large wallets. These movements to exchanges are often interpreted as an intention to sell.
For retail investors, this is a high-decision zone. The “buy the dip” strategy is risky without confirmation of support. If the broader crypto market, led by Bitcoin, does not show strength, XRP will struggle to recover. Traders are now looking for a bullish divergence. Or they need to see a strong buying reaction in the $0.46 zone.
XRP’s price is at a defining crossroads. The battle between buyers and sellers is intensifying at the $0.48 support. The next few trading sessions will be crucial for defining the short-term trend. Observers will watch if the MVRV recovers. They will also see if whales stop their sales and begin to accumulate. The asset’s immediate future depends on holding this thin line of defense.
