XRP Realized Losses Surge to Highest Level in 39 Months

• The XRP realized losses reached its highest level in 39 months.
• A surge in realized losses often signals the exit of weak hands.
• Typically, crypto asset prices experience bullish reversals after a surge in realized losses.

Leading market intelligence platform Santiment has identified a development that could potentially trigger a turnaround in XRP’s price. In its latest post on X, the analysis platform highlighted a spike in the cryptocurrency’s realized losses, a signal that suggests that weak hands have exited the market.

Panic Sellers are Exiting the Market

According to Santiment, XRP has recorded its largest on-chain realized loss spike since 2022. The previous weekly milestone of approximately $1.93 billion in realized losses occurred 39 months ago, after which XRP surged 114% over the following eight months. The latest data show realized losses currently stand at around $908 million, signaling renewed capitulation in the market.

Typically, significant realized losses are the result of a large number of investors selling their coins at prices below what they paid for them. This usually happens during periods of extreme fear, with a set of investors choosing to cut their losses amid fears of further price capitulation.

Although the development suggests a negative market sentiment, it usually indicates a crucial price signal ahead of potential bullish reversals. The logic behind the potential upside connotation is that many weak hands have sold their bags, leaving fewer sellers to push prices lower. This may suggest that the bulk of forced selling has already occurred.

How Crypto Traders Interpret Realized Losses

Cryptocurrency analysts use the realized profit and loss data to gauge when investors’ emotions reach extreme levels. Typically, such events lead to price reversals, with crypto prices changing direction. This could apply to XRP, considering the extent of the bearish pressure on the cryptocurrency.

XRP traded for $1.374 at the time of writing, according to TradingView’s data. The cryptocurrency has experienced a protracted downtrend, dropping from a high of $3.666 achieved in July 2025.

Related: XRP Price Prediction: What Will Be the XRP Price at the End of February?