- XRP sentiment has entered the “FUD Zone” as fear reaches its highest level in nearly three weeks.
- Short-term XRP traders are facing deep unrealized losses, with the 30-day MVRV ratio flashing extreme weakness.
- Despite negative sentiment, XRP continues holding key support, suggesting a possible accumulation phase may be forming.
Fear around XRP has climbed to its highest level in nearly three weeks, according to fresh sentiment data shared by Santiment and market watcher CW. The shift comes even as XRP continues holding near the $1.35 region, avoiding the kind of deeper breakdown that many nervous traders had started to expect.
Santiment’s chart tracks the balance between positive and negative social media commentary surrounding XRP. The blue line reflects bullish sentiment, while the red line represents bearish commentary. On May 25, the bulls-to-bears ratio fell to roughly 1.10 to 1.0, pushing XRP into what analysts describe as the “FUD Zone.”
That kind of reading usually signals that traders are becoming overly fearful. Interestingly though, extreme fear does not always lead to more downside. In past XRP cycles, heavy pessimism has sometimes appeared near local bottoms, especially when sellers begin running out of momentum and buyers slowly step back in.
XRP Holds Firm Despite Negative Sentiment
What stands out most is that XRP has not broken down aggressively despite the rise in fear. The token has managed to stay above major support levels even as social sentiment turned sharply negative. That disconnect has caught the attention of traders who believe the market may be entering a quiet accumulation phase.
In crypto, price stability during high fear can be meaningful. When traders expect a major drop and it does not happen, short-term sentiment can shift quickly. Sellers become less aggressive, buyers gain confidence, and the asset sometimes begins building a base before a stronger move.
For now, XRP remains in a cautious position. The fear is real, but the price reaction has been surprisingly controlled.
XRP Traders Sit on Heavy Unrealized Losses
Santiment Intelligence data shows that the average XRP trader active over the past 30 days is down around 47%. That is a steep decline, and it suggests many short-term holders bought during stronger conditions before being caught in the latest pullbacks.
Some traders appear to have exited near local lows after repeated declines wiped out gains made during late 2024 and early 2025. As a result, XRP’s 30-day MVRV ratio has dropped to levels even lower than those seen in December 2020, placing the asset in what analysts call an “extreme opportunity zone.”
The MVRV ratio helps measure whether traders are sitting on profits or losses. When the reading becomes deeply negative, it often reflects fear, frustration, and capitulation among retail investors. Historically, those conditions have sometimes appeared near important XRP bottoms, though they do not guarantee an immediate recovery.
Accumulation Signals Begin to Appear
The latest data suggests XRP may be closer to an accumulation phase than a market top. The current MVRV reading remains heavily negative, meaning many investors are holding at a loss rather than enjoying large unrealized gains. That typically reduces the risk of heavy profit-taking because fewer traders have meaningful profits left to sell.
There is also a noticeable gap between trader behavior and price action. While many XRP holders are underwater, the price has still managed to hold above important support zones. That kind of resilience can matter, especially when weaker hands have already exited the market.
Longer-term MVRV readings also suggest that major investors are not sitting on excessive profits. This could limit selling pressure from older holders and create better conditions for accumulation if demand begins to return.
XRP Outlook Still Depends on Fresh Catalysts
Despite the fear, some investors remain optimistic about XRP’s longer-term outlook. Ripple’s regulatory progress, ongoing ETF speculation, and broader payment-related use cases continue supporting the bullish case. These narratives have not disappeared, even if short-term sentiment has weakened.
The market now appears to be waiting for confirmation. If XRP continues holding support while sentiment remains deeply negative, buyers may begin viewing the current zone as an opportunity rather than a warning. However, if fear turns into sustained selling pressure, the asset could still face another test of lower levels.
For now, XRP is sitting in an uncomfortable but interesting position. Sentiment is weak, traders are underwater, and fear is rising. Yet the price has not collapsed. That alone may be the most important signal to watch in the days ahead.
