XRP declined roughly 4% this week as on-chain data revealed its largest realized loss spike since 2022, signaling intensified capitulation across the market.
Blockchain analytics platform Santiment shows approximately $1.93 billion in realized losses over a single week. Realized losses reflect coins sold below their acquisition price, marking actual exits rather than temporary paper drawdowns. The last comparable surge occurred nearly 39 months ago, after which XRP rallied more than 100% in the following months.
Capitulation Events and Market Bottom Signals
Historically large realized loss spikes have coincided with emotional selling waves where short-term holders exit positions. Such phases often result in coins transferring to longer term investors with stronger conviction or lower cost bases, potentially forming a more stable price foundation.
However, the current macro backdrop differs from prior cycles. Elevated volatility across major cryptocurrencies, regulatory uncertainty and broader economic headwinds continue to weigh on sentiment.
Technical Resistance and Demand Recovery Key
Despite increased ledger activity and heavy distribution, XRP remains below key technical resistance levels. For a sustained rebound to materialize, spot demand must strengthen while sell pressure gradually declines.
While extreme realized losses may suggest seller exhaustion, durable recovery will depend on improved liquidity conditions and broader market stabilization in the weeks ahead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.