XRP Prints Biggest Loss Since 2022, Bottom In?

 Key Insights:

• XRP records largest weekly realized loss since November 2022 amid sharp price decline.
• Previous -$1.93B loss spike preceded a 114% XRP rally over eight months.
• XRP trades at $1.42 as traders debate potential bottom formation.

XRP has posted its largest weekly on-chain realized loss since November 2022, according to data shared by Santiment. The recent figure reached roughly -$908 million. The spike followed a sharp decline that forced many holders to sell below their purchase price.

XRP trades at $1.42, with a 24-hour trading volume of $1.32 billion. The token is down 1.05% on the day and 13.56% over the past week. The scale of the realized losses has drawn attention across the market.

Realized Loss Spike Revives 2022 Comparison

Santiment noted that the last comparable event occurred 39 months ago. At that time, XRP recorded -$1.93 billion in weekly realized losses. After that milestone, the asset rose more than 100% over the next eight months.

The firm explained that realized losses increase when investors sell at prices below their cost basis. It stated that “large spikes in realized losses often show up near market bottoms.” The recent reading marks the highest level of capitulation since that 2022 event.

Although the current spike is smaller than the prior record, it reflects elevated fear. Heavy selling pressure has already taken place during the recent decline.

Price Holds Near Recent Lows

After the loss spike, XRP has attempted to stabilize near the $1.40 range. Price action shows reduced downside momentum compared to earlier sessions. The pattern resembles late 2022, when extreme selling preceded recovery.

Santiment stated that “a wave of heavy realized losses can mean that much of the damage has already been done.” The firm added that realized profit and loss data can help track emotional extremes in the market.

Trading activity remains active despite the downturn. Daily volume above $1.3 billion indicates continued participation as price consolidates.

Diverging Outlooks Emerge

While on-chain data points to heavy capitulation, some traders have shared aggressive projections. Market commentator CryptoBull posted the following targets: “March $13, April $27, May $70.”

Those targets stand far above the current price of $1.42. The market has not confirmed a reversal at this stage. Participants are watching whether XRP can establish higher lows in the coming weeks.

The latest realized loss spike places XRP at a level last seen during a major cycle reset. Whether price follows a similar path will depend on sustained buying and broader market conditions.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.