XRP traders who bought the digital asset recently are sitting on average losses of 47%, according to on-chain data. That puts short-term holders in one of the weakest return zones seen since late 2020.
Deep bearish sentiment
Data from market intelligence firm Santiment shows deep bearish sentiment among XRP traders. The firm tracks social media chatter and on-chain activity to gauge market mood. Right now, the signal is overwhelmingly negative.
But Santiment also notes that such extreme pessimism has historically preceded price rebounds. When short-term holders are underwater by that much, selling pressure often exhausts itself, and the asset can bounce back.
What the numbers say
The 47% loss figure refers to the average unrealized loss for wallets that have held XRP for less than 30 days. That cohort is typically the most reactive to price swings. When they're deep in the red, they're less likely to sell — but also more prone to panic if prices drop further.
Santiment’s data suggests the current reading is among the most bearish since late 2020, a period that eventually gave way to a strong rally for XRP. The firm doesn’t predict a specific price target, but it flags the setup as one worth watching.
No rebound guaranteed
Bearish sentiment alone doesn’t force a reversal. The crypto market has seen long stretches of pessimism that didn’t immediately turn around. Still, the combination of deep losses and widespread negative sentiment has, in the past, created the conditions for a snapback.
For now, short-term XRP holders are waiting. The next move — whether a relief rally or further downside — will depend on broader market factors and XRP-specific news flow.
