Usman Salis
⬤ XRP has seen its largest on-chain realized loss spike in more than three years, based on fresh network data. Recent Santiment metrics reveal a massive weekly realized loss event that could point to panic selling and capitulation among holders. Past episodes of extreme realized loss spikes have typically shown up near price bottoms, catching the eye of analysts who track XRP's on-chain activity.
⬤ On-chain realized profit and loss tracks the actual value holders lose or gain when they sell compared to what they originally paid. The latest numbers show realized losses hit nearly -$1.93 billion - the sharpest weekly drop since late 2022. When a similar loss spike happened about 39 months back, XRP subsequently rebounded strongly, climbing over 100 percent in the next eight months. That historical pattern now serves as a reference for how the market might react once this selling pressure fades.
⬤ Realized losses typically jump when holders sell below their purchase price during heavy selling waves, effectively locking in their losses. "These capitulation events can signal that weaker hands have exited, potentially reducing downward pressure if buying interest returns," according to on-chain analysts. The recent loss spike comes during broader market turbulence, with altcoins reacting to wider crypto sentiment shaped by Bitcoin moves and macro factors. While the chart shows a sharp downward spike, early stabilization signs have appeared, suggesting the immediate panic wave may have peaked.
⬤ This realized loss milestone reflects a period where selling intensity reached multi-year highs in the XRP ecosystem. Tracking metrics like realized profit and loss alongside price action keeps giving context about where the market stands right now, especially after sustained volatility. While capitulation doesn't guarantee an instant turnaround, extreme loss spikes historically have matched up with trader exhaustion that can eventually lead to consolidation or recovery phases.
Usman Salis
