XRP, Bitcoin Now In “Good Buy Zone,” Says Analytics Firm
Overview
On-chain analytics firm Santiment has reported that Bitcoin, XRP, and several other cryptocurrencies have entered what they describe as a “buy zone” based on the 30-day Market Value to Realized Value (MVRV) Ratio. This metric indicates a significant degree of short-term losses among recent investors in these assets.
Analysis of the MVRV Ratio
The MVRV Ratio is a key on-chain indicator that compares the market capitalization of a cryptocurrency to its Realized Cap. The Realized Cap reflects the total value of an asset based on the price at which each token was last transacted on the blockchain. This model provides an estimation of the total capital invested by cryptocurrency holders.
When the MVRV Ratio exceeds 1, it indicates that the market cap is greater than the Realized Cap, suggesting that investors are generally in profit. Conversely, an MVRV Ratio below 1 indicates that investors are experiencing losses.
Santiment has highlighted the 30-day MVRV Ratio, which tracks the profit-loss balance of traders who purchased their coins within the last month. The firm noted that the recent bearish trend in the cryptocurrency market has led to a decline in the 30-day MVRV Ratio for several major cryptocurrencies.
Specific Findings
- Recent Bitcoin buyers are approximately 11.5% underwater.
- XRP investors are around 10.2% underwater.
- Ethereum, Cardano, and Chainlink have experienced even greater losses, with 30-day MVRV Ratios reflecting declines of 15.4%, 19.7%, and 16.8%, respectively.
According to Santiment, both Bitcoin and XRP have surpassed the threshold that indicates a “good buy zone.” The other cryptocurrencies mentioned fall into what the firm classifies as an “extreme buy zone.”
Santiment suggests that in a zero-sum game, it is prudent to buy assets when the average returns of peers are significantly negative. They also stated that as MVRV Ratios decline, the likelihood of a market recovery increases.
Impact on the crypto market
- The entry of Bitcoin and XRP into a “buy zone” may attract investors looking for potential rebounds.
- The significant losses reported for Ethereum, Cardano, and Chainlink could lead to increased buying interest as they are classified in an “extreme buy zone.”
- The current bearish trend may prompt market participants to reassess their positions and strategies.
- The insights from Santiment could influence investor sentiment and trading behavior in the near term.
- Market dynamics may shift as traders react to the reported MVRV Ratio trends, potentially leading to increased volatility.
Updated: 11/19/2025, 3:15:10 AM
