$13 XRP Target In View As Heavy XRP Capitulation Mirrors 2022 Bottom That Preceded Rocket Rally

XRP ETF inflows have collapsed by 93% as the token’s price weakens, reversing earlier strong institutional interest seen in late 2025. This decline has coincided with downward price pressure, signaling a temporary pause in accumulation.

On-chain data indicates that XRP has recorded its largest weekly realized loss spike since 2022. This event signals aggressive panic selling and potential exhaustion of sellers.

Historically, similar capitulation events have marked the start of recovery phases. For instance, the 2022 capitulation event was followed by an 114% price increase over the next eight months.

Why Did This Happen?

ETF flows have shifted in line with XRP’s price movements, suggesting cyclical shifts typical after rapid growth in new investment products. This slowdown in ETF inflows indicates a temporary pause in institutional accumulation.

Large holder activity has also increased, with over 31 million XRP transferred to Binance, potentially signaling increased sell pressure.

Realized losses are a key metric used to measure actual losses. When holders capitulate and sell below their cost basis, it signals peak fear and potential market bottoms.

How Are Markets Reacting?

XRP is trading near $1.30, having retraced about 62% from its July 2025 high. The price has fallen more than 30% over the past month amid broader market weakness.

XRP ETFs have seen only five days of net outflows in their three-month history, suggesting continued institutional interest despite recent declines.

Capitulation events often clear supply overhang by forcing out weakly held positions. This can create a more stable foundation for price if selling pressure subsides.

What Are Analysts Watching Next?

On-chain metrics such as realized losses and ETF flows are critical for determining whether the worst of the sell-off is over. A potential recovery toward $2 depends on easing sell pressure and improved demand.

SBI Holdings has launched $64.5 million in on-chain bonds rewarding investors with XRP. This could create structural demand and boost institutional adoption.

Analysts suggest that the recent realized loss spike indicates that sellers may be exhausted. A rebound will depend on improving demand and easing macroeconomic and regulatory uncertainty.

Investors are closely watching for signs of stabilization in ETF inflows and price trends. If selling pressure continues, further downside risks remain.