XRP Liquidity Hits Lowest Level Since 2020 — What Happens Next?

The average XRP trader active over the past 30 days is currently sitting on a loss of roughly 47%, according to blockchain analytics firm Santiment. That figure comes from XRP’s 30-day Market Value to Realized Value ratio, which has now fallen to its lowest point since December 2020.

Santiment says readings like this typically move back toward 0% over time, placing the current level in what analysts describe as an extreme undervalued zone.

Similar conditions in past market cycles have appeared ahead of strong price rebounds, though the firm cautioned that a weak MVRV reading alone does not guarantee an immediate turnaround.

Deeper Drop In Market Depth

The trader loss data arrives alongside a separate finding on market liquidity. CryptoQuant analyst Arab Chain reported that XRP’s 30-day liquidity index on Binance has dropped to approximately 0.043 — the weakest reading since January 2020.

For context, that same index climbed above three during periods of stronger trading between 2022 and 2024, at times crossing four.

The collapse in that figure points to a market that has thinned out considerably, with far fewer orders available to absorb large trades. Arab Chain said the decline suggests speculative interest in XRP has faded and that fresh money has slowed.

What Low Liquidity Means For Price

A thinner market can cut both ways. When fewer orders sit in the book, a large buy or sell can push the price sharply in either direction without much resistance.

Arab Chain made clear, though, that low liquidity does not point to a bullish or bearish outcome on its own — it simply means the market is more sensitive to sudden moves.

XRP was trading near $1.34 at the time of the analysis, having pulled back from a recent high of $1.54. Crypto analyst CasiTrades flagged that XRP has spent four months struggling to clear the $1.65 resistance level, and the longer it stays below that mark, the greater the risk of one final drop before any recovery takes hold.

CasiTrades pointed to $1.10 and $0.87 as the two key support zones that could come into play if selling pressure continues. A reclaim of the $1.65 level, and a hold above it, would be the first clear sign of a stronger recovery, the analyst said.

XRP whale transactions worth over $1 million have also dropped 57% over a nine-day stretch, based on separate reports, adding to the picture of slowing activity in the market.

Featured image from Paul Thuysbaert/Stone/Getty Images, chart from TradingView