XRP Realized Losses Hit Highest Level Since 2022… After 30% Plunge, Is This the Bottom for XRP?

▲ XRP (XRP) / AI-generated image

The price of 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 phase.

According to cryptocurrency-focused media outlet BeInCrypto on February 23 (local time), XRP fell more than 30% over the past month amid a broader market downturn driven by geopolitical tensions and tariff concerns. During this period, realized losses by investors reached their highest level since 2022, a typical sign of market capitulation. Data from Santiment indicates that such peaks in realized losses have historically acted as precursors to price bottoms.

Whale activity is adding tension to the market. Analyst Darkfost reported that whales deposited 31 million XRP, worth approximately $45 million, to Binance in a single day. Of that amount, 14.49 million XRP flowed out from whale wallets holding more than 1 million XRP, while investors holding between 100,000 and 1 million XRP sent 14.23 million XRP to exchanges. Although increased exchange inflows are generally interpreted as potential selling pressure, they may also reflect collateral positioning 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 considered one of the most important support and resistance levels on-chain. The longer the price remains below this level, the more investor sentiment may deteriorate. However, the Market Value to Realized Value (MVRV) ratio is showing a pattern similar to that seen just before the sharp rally in July 2024, raising expectations of a possible rebound.

A slowdown in institutional demand remains a variable. As inflows into spot XRP ETFs have weakened, macroeconomic headwinds across the broader market appear to be outweighing positive developments within the Ripple ecosystem. Santiment noted that when realized losses reached a similar level 39 months ago, XRP subsequently surged 114% over the following eight months, suggesting that the current extreme fear could serve as a foundation for a rebound.

The digital asset market seems to be entering a phase where selling pressure is being exhausted after a prolonged correction. While the potential impact of $45 million in whale sell-offs warrants close monitoring, historical data suggests that the current wave of panic selling may be approaching a bottom. Investors are advised to remain cautious amid short-term volatility and monitor whether key support levels can be reclaimed.

*Disclaimer: This article is provided for informational purposes only and the publisher is not responsible for any investment losses incurred based on this content.*