Is XRP Set to Break the $1.30 Support Level? Rebound Expected After Panic Selling
Is XRP Set to Break the $1.30 Support Level? Rebound Expected After Panic Selling
As the price of XRP has plunged sharply, investors are recording massive realized losses, while spreading fear across the market is fueling panic selling and putting the asset at a crossroads for further declines.
According to cryptocurrency media outlet CryptoPotato on February 11 (local time), on-chain analytics firm Santiment reported that XRP holders are realizing record-breaking losses amid the recent price downturn. As XRP fell below key psychological support levels, even investors who had anticipated profits joined the selling wave, causing realized losses to surge. Santiment noted that such large-scale loss realization could be part of a short-term bottoming process, but cautioned that additional downside volatility remains possible.
The sharp deterioration in realized profit and loss indicators reflects a typical capitulation pattern, with investors unable to withstand current price levels and dumping their holdings. In particular, those who entered during the previous bull market have begun cutting losses, intensifying selling pressure. Although transaction activity within the XRP network remains active, capital flows are concentrated more on selling and cashing out than on buying, significantly weakening price resilience compared to the past. On-chain analysts point to previous cases where large realized losses were followed by temporary rebounds from oversold conditions.
Changes in XRP inflows to cryptocurrency exchanges are also contributing to investor anxiety. Retail investors moving assets onto exchanges for immediate sale have sharply increased potential sell-side supply, creating a heavy resistance barrier to any price recovery. Asset movements from wallets associated with so-called “whales,” or large holders, have further amplified fear among smaller investors. Analysts warn that if exchange reserves remain elevated, the likelihood of additional downward price adjustments increases.
The simultaneous weakness of market leaders such as Bitcoin (BTC) and Ethereum (ETH) has provided a broader macro backdrop that intensifies panic selling in the altcoin market. Growing global macroeconomic uncertainty has heightened risk aversion, strengthening selling pressure on relatively volatility-prone assets like XRP. The market’s Fear and Greed Index has dropped sharply from last week’s greed phase to the current fear phase, indicating that investors’ psychological support levels have effectively collapsed.
XRP is currently locked in a fierce battle around the $1.3 level, and whether it can hold this support is expected to be a key turning point determining the overall price trend for the first quarter. While Santiment suggested that selling pressure may be nearing an exhaustion point as investors approach capitulation, it warned that abrupt changes in macroeconomic indicators could further heighten volatility. Market participants are advised to move beyond short-term price swings and instead reassess their investment strategies based on meaningful shifts in on-chain supply and demand data and the responses of institutional investors.
Disclaimer: This article is for investment reference only and we are not responsible for any losses resulting from investment decisions based on it. The content should be interpreted solely for informational purposes.
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