XRP Realized Losses Hit Highest Level Since FTX Collapse, Analyst Says Rebound Possible

▲ XRP

XRP recorded $908 million in on-chain realized losses—the largest since 2022—signaling that investor capitulation has reached its peak. However, analysis suggests that, based on past cases, this sharp decline could instead serve as a precursor to a strong rebound.

According to cryptocurrency outlet The Crypto Basic on February 24 (local time), XRP fell 4.65% over the past 24 hours and is testing support near $1.30. Data from blockchain analytics firm Santiment shows that XRP’s realized losses this week totaled $908 million, matching the peak recorded during the 2022 FTX collapse. After posting a massive $1.93 billion in realized losses in 2022, XRP surged 114% over the following eight months, drawing renewed market attention.

A sharp spike in realized losses indicates that investors sold their holdings below their purchase price, a phenomenon typically seen when market fear reaches extreme levels. With the Bitcoin Fear & Greed Index dropping to 8—signaling extreme fear—there is a strong possibility that selling pressure has largely been exhausted as weak hands exit the market. Santiment explained that such emotional extremes can reset supply and demand dynamics, potentially triggering significant price increases with only modest capital inflows.

Crypto analyst CryptoBull прогнозs a strong rebound after a retest of the $1.11 support level, citing a shakeout pattern observed on the three-day chart. He presented an aggressive price target, projecting XRP could reach $4 by early March and potentially climb to between $9 and $10 thereafter. In particular, improved regulatory clarity—including the anticipated passage of U.S. cryptocurrency market structure legislation scheduled for April—is expected to act as a catalyst for price appreciation.

XRP is currently down about 70% from its 2025 high of $3.66, with market participants interpreting the recent large-scale realization of losses as a potential signal of bottom formation. Some analysts view the current price range as a generational buying opportunity and anticipate a trend reversal once selling pressure subsides. As historical data suggests, moments when fear peaks may mark the starting point of a new upward rally.

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