 ▲ XRP (XRP) / AI-generated image |
XRP has plunged more than 30% over the past month, pushing investor anxiety to extreme levels, while on-chain indicators are signaling a potential entry into a bottoming zone.
According to a February 23 report by crypto-focused outlet BeInCrypto, XRP has fallen over 30% in the past month amid broader market declines driven by geopolitical tensions and tariff concerns. During this period, investors’ realized losses reached their highest level since 2022, a classic sign of market capitulation. Data from Santiment indicates that similar loss peaks have historically preceded the formation of price bottoms.
Movements by whales are adding to market tension. Analyst Darkfost reported that whales deposited 31 million XRP—worth approximately $45 million—into Binance within a single day. Of this amount, wallets holding more than 1 million XRP accounted for 14.49 million XRP in outflows, while investors holding between 100,000 and 1 million XRP transferred 14.23 million XRP to exchanges. While increased exchange inflows are typically interpreted as potential selling pressure, they may also reflect collateralization or portfolio rebalancing.
From a technical perspective, XRP is currently trading below its realized price, which represents the average purchase price of the circulating supply, placing it at a critical juncture. The realized price is regarded as one of the most important on-chain support and resistance levels. A prolonged period below this level could further dampen investor sentiment. However, the market value to realized value (MVRV) ratio is showing a pattern similar to the period just before the sharp rally in July 2024, raising hopes for a rebound.
A slowdown in institutional demand remains a key variable. Inflows into spot XRP ETFs have weakened, with broader macroeconomic headwinds overshadowing positive developments in Ripple’s ecosystem expansion. Santiment noted that when realized losses reached similar levels 39 months ago, XRP went on to surge 114% over the following eight months, suggesting that the current extreme fear could serve as a foundation for recovery.
The crypto market appears to be entering a phase where selling pressure is becoming exhausted after a prolonged correction. While the potential impact of $45 million in whale-driven selling pressure warrants close monitoring, historical data suggests that the ongoing panic selling may be nearing a bottom formation. Investors are advised to remain cautious amid short-term volatility and to watch whether key support levels are reclaimed.
Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses resulting from its use. The content should be interpreted solely for informational purposes.