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XRP (Ripple) investors are gripped by extreme fear and rushing to cut losses, triggering on-chain warning signals that a massive wave of sell-offs could erupt.
According to cryptocurrency outlet Finbold on March 6 (local time), data analysis from blockchain analytics platform Glassnode shows that XRP’s Spent Output Profit Ratio (SOPR)—an indicator measuring whether holders are selling at a profit or loss—has fallen to 0.96. A drop below 1 essentially indicates that investors have been selling their assets at a loss over the past four weeks.
This collapse in the SOPR closely resembles the conditions seen just before the prolonged downturn between September 2021 and May 2022. At that time, XRP lost its $0.57 support level and experienced a major capitulation event, plunging 50% to $0.28 by mid-June 2022.
Coupled with broader bearish sentiment in the macro cryptocurrency market, the SOPR’s drop below 1 suggests that XRP could once again fall into a deep capitulation phase. Even accounting for reduced returns amid overall market growth, a 40% to 50% decline from current levels poses the risk of the asset falling sharply to around $0.80.
However, amid these large-scale sell-off signals, major market participants—whales and shark investors—have been aggressively accumulating since the crypto market crash in October, drawing attention.
According to data from blockchain analytics firm Santiment, whales holding between 10 million and 1 billion coins have accumulated a staggering 4.18 billion XRP since the October 11 crash. As a result, this group of large investors now holds 19.61 billion XRP, accounting for 32% of the total circulating supply, emerging as a potential key factor in defending against further sharp declines.
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