 ▲ XRP (XRP)/AI-generated image |
XRP has recorded $1.93 billion in realized losses, the largest in 39 months, signaling large-scale investor capitulation, while the possibility of a price rebound based on past cases is being raised.
On February 22, cryptocurrency-focused media outlet CoinGape reported, citing data from on-chain analytics firm Santiment, that XRP holders engaged in record levels of sell-offs over the past week. The $1.93 billion in realized losses marks the highest level in approximately 39 months since 2022, indicating that market fear has reached an extreme. Historically, periods of significant realized losses have coincided with market bottom formations and have been interpreted as precursors to strong rebounds.
Currently, XRP continues its downward trend after breaking below the 200-week moving average support level of $1.42, but the Market Value to Realized Value (MVRV) indicator remains in negative territory, suggesting the asset is significantly undervalued. Analysts expect selling pressure to ease sharply as the market absorbs large-scale stop-loss volumes. A 1,190% imbalance in short liquidations further supports the view that downside pressure may be reaching exhaustion.
On-chain data shows that whale investors are taking advantage of the current downturn to accumulate, while a notable transfer of holdings among long-term investors is underway. Positive ecosystem developments, such as SBI Holdings launching tokenized bonds that offer XRP rewards, are also reinforcing downside support. Experts believe that if XRP reclaims the $1.42 resistance level, a price recovery rally could begin.
The performance of major assets such as Bitcoin (BTC) and Ethereum (ETH), along with changes in the regulatory environment, is also expected to play a decisive role in shaping XRP’s future price trajectory. Ongoing discussions about the potential adoption of the XRP Ledger by central banks for cross-border payments continue to fuel expectations of a fundamental revaluation. The record-breaking realized losses are viewed as a bottoming process for a long-term bullish cycle.
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