Santiment said data indicating that investors in Dogecoin and XRP are, on average, at a loss could point to a more favorable opportunity zone than periods when large profits have accumulated.
In a comparison shared by the platform on October 20, Dogecoin’s (DOGE) 365-day MVRV ratio was around 0.74, while that of XRP was at 0.92. Both values indicate that investors within the measurement period are at an average loss.
MVRV compares market capitalization with realized value, which is calculated using the prices at which coins last moved on-chain. This makes it possible to look not only at price direction but also at whether investors are in profit or loss relative to their estimated cost basis. In this comparison, ratios below 1 are associated with losses, while values near 1 indicate a break-even position.
Why are investors at a loss considered an opportunity signal?
Santiment’s assessment focuses on how much of the selling pressure may already have passed. During periods of high MVRV, when large profits have accumulated, investors may be more likely to realize their gains. Lower levels can help identify zones where selling pressure may be nearing exhaustion.
For this reason, the firm considers the outlook for DOGE and XRP historically more favorable and relatively lower-risk than during periods when investors are sitting on large profits. The opportunity assessment does not identify a definitive bottom or rally date; it offers a risk assessment based on investors’ profit-and-loss positions.
Bitcoin and Ethereum present a more neutral picture
In the same comparison, the 365-day MVRV values for Bitcoin, Ethereum, and Chainlink (LINK) clustered between 0.97 and 1.04. The average investor position in these three assets appears closer to break-even.
Santiment said the indicator shows no strong signs of either an excessive risk of profit-taking or an unusually deep wave of selling at a loss. What sets DOGE and XRP apart is that investors are in a more pronounced loss position, rather than a difference in price movements.
Not investment advice.