XRP Records Largest Realized Loss Since November 2022, Weekly Realized Loss Reaches $1.93 Billion

XRP has recorded its largest weekly realized loss since late 2022, reaching $1.93 billion. This indicates widespread panic selling as investors offload positions at a loss according to MEXC. The event mirrors a similar spike in November 2022, which was followed by a 114% price increase over the next eight months.

Realized losses occur when investors sell coins for less than their purchase price, often signaling fear and emotional exhaustion. Such spikes are typically seen near market bottoms, with the exhaustion of selling pressure potentially creating conditions for a rebound.

The crypto market's overall sentiment has worsened, as highlighted by Matrixport's Greed & Fear index, which has reached extremely depressed levels. This suggests the market may be approaching a turning point, with on-chain indicators like the adjusted Spent Output Profit Ratio (aSOPR) showing bearish stress according to data.

Why Did This Happen?

XRP's weekly realized loss has reached $1.93 billion, the highest since November 2022. This suggests a surge in capitulation among holders, as large numbers of traders sell at a loss according to reports.

On-chain data indicates that such spikes often precede a market bottom. When panic selling leads to emotional exhaustion, the pool of sellers may shrink, potentially triggering a price rebound.

The price of XRP has been trading in a wide corrective range since January 2025, with a key support level at $1.20. A clean break below this level could lead to further corrections, while holding above it may extend the current bounce.

How Did Markets React?

XRP is currently trading below key moving averages and has seen a 50.11% annual decline. This indicates broader weakness in the altcoin market and aligns with the bearish trajectory of the broader crypto market.

Crypto market sentiment has deteriorated sharply in February, with Matrixport's Greed & Fear index reflecting extremely bearish conditions. This aligns with historical patterns where such levels indicate a potential inflection point.

The adjusted Spent Output Profit Ratio (aSOPR) has also declined to levels seen during previous bear market periods. Analysts note that this is more indicative of a bear market phase than a mid-cycle correction.

What Are Analysts Watching Next?

Analysts are monitoring the $1.20 support level for XRP. A break below this level could signal a deeper correction, while a sustained move above it may indicate the continuation of the current bounce.

Market observers are also tracking whether the aSOPR recovers above 1.0 in the near term. If it fails to do so, it could increase the likelihood that Bitcoin and XRP are entering a broader bearish phase rather than a simple correction.

Investors are advised to remain cautious as the market appears to be entering a stress zone. Full capitulation and a durable bottom tend to form only after a deeper compression in aSOPR and peak loss realization.

The market remains in a consolidation phase, with key on-chain metrics suggesting exhaustion of selling pressure. A clean breakout above current levels may indicate a shift toward a more bullish narrative.