XRP has recently hit a significant milestone, recording a staggering on-chain realized loss of $908 million, marking the largest spike since 2022, as reported by analytics firm Santiment. This development comes during a period when XRP”s price struggles to regain stability following a pronounced market correction that has left many holders feeling disheartened.
Over the past day, XRP has experienced a decline of 4.65%, contributing to a total weekly loss of 8.89% and a troubling nearly 30% drop over the month. The implications of such realized losses are profound, especially considering this marks the largest weekly loss event since November 2022, when the market recorded approximately $1.93 billion in realized losses.
During the earlier event, the aftermath saw a remarkable price rebound of 114% over the subsequent eight months. The current scenario indicates that many investors have opted to liquidate their holdings, leading to a crucial juncture where panic selling is prevalent. The fear and greed index currently stands at a low of 8, reflecting extreme market fear.
Realized losses occur when investors sell their assets for less than their original purchase price. Such occurrences often spike during times of market anxiety, prompting traders to cut their losses instead of weathering the storm. Presently, XRP is trading at $1.30, down nearly 70% from its peak of $3.66 reached in 2025.
According to Santiment, significant spikes in realized losses frequently signify emotional extremes within the market. As panic reaches its zenith and weaker hands exit, the resulting reduction in selling pressure may set the stage for a potential price recovery. Although this dynamic does not guarantee an immediate rally, it can alter the supply-demand equilibrium.
If new buying interest surfaces after this capitulation phase, even minimal inflows could substantially impact the price of XRP. Historically, major spikes in realized losses have often coincided with market bottoms. For instance, following the previous significant spike in 2022, XRP went on to achieve triple-digit gains over an eight-month period.
While past performance does not ensure future results, these on-chain indicators are drawing the attention of traders. Analysts are increasingly suggesting that the current price levels present a “generational” opportunity, indicating that the worst may be behind us.
In a recent analysis, expert CryptoBull mentioned the possibility of a retest of $1.11 before a more robust rebound occurs. He points to a “shakeout” phase evident in XRP“s three-day chart, which appears to be pushing out weaker holders ahead of a potential surge. Projections are optimistic, with some analysts anticipating prices of $4 by early March and even eyeing $10 in the future.
Positive catalysts that could support this outlook include potential regulatory clarity, particularly with the Digital Asset Market Clarity Act possibly passing by April, and hints of a significant development associated with Ripple. Interestingly, AI models speculate a potential surge above $35 by 2026, though skeptics raise concerns regarding market cap and tokenomics.
