XRP Records Largest Realized Loss Spike Since 2022 as $1.93B Capitulation Hits Network

• XRP posts biggest realized loss spike since 2022
• On chain data shows $1.93 billion capitulation week
• Santiment links extreme fear phase to potential market bottom

XRP has logged its sharpest wave of realized losses in nearly four years, signaling a decisive moment for holders. Fresh on chain data shows that traders locked in heavy losses last week as prices struggled to stabilize. According to Santiment, XRP just recorded its largest spike in on chain realized losses since late 2022. That surge pushed weekly realized losses to roughly $1.93 billion.

A realized loss occurs when investors sell tokens below their purchase price. Consequently, a spike of this scale reflects intense fear across the market. Santiment noted that such behavior often appears when panic takes control of sentiment. Moreover, these periods historically align with late stage capitulation events.

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Data from Santiment shows a dramatic downward move in realized profit and loss metrics. That move mirrors a similar capitulation phase seen in November 2022. At that time, XRP experienced a comparable weekly realized loss milestone. Following that event, XRP climbed 114 percent over the next eight months.

However, Santiment cautioned that extreme fear often peaks before the final price bottom forms. Therefore, this spike does not guarantee an immediate recovery. Instead, it suggests that the bulk of emotional selling may already have occurred. Once weaker hands exit the market, selling pressure typically declines.

Capitulation Wave Reshapes Short Term Market Structure

Over the past week, the scale of losses reshaped XRP’s short term structure. Heavy selling reduced the number of holders willing to exit at lower prices. Additionally, the realized loss spike indicates that long term holders also contributed to the downturn. That shift reflects a broader reset in positioning.

Significantly, markets often require such flush outs before regaining balance. When investors accept losses in large numbers, it removes persistent overhead supply. Consequently, even modest buying interest can generate stronger price reactions. Santiment emphasized that this pattern has repeated across previous crypto cycles.

Morgan, cited in the coverage, aligned this development with the psychological cycle of corrections. According to Santiment’s assessment, markets tend to bottom when fear reaches its most intense stage. That emotional tipping point often marks the final stretch of a decline.

XRP now sits at a crossroads following this historic realized loss spike. The data does not promise a swift rebound. Nevertheless, it highlights a critical reset within the network’s investor base.

Conclusion

Although uncertainty remains, the recent $1.93 billion realized loss surge marks one of the most significant capitulation phases since 2022. Consequently, market participants now watch closely to see whether reduced selling pressure will translate into stabilization in the weeks ahead.

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