XRP Realized Loss Spikes to the Highest Level Since 2022

Key Insights

• XRP onchain realized loss spiked to a weekly $908 million, its highest level since 2022.
• Santiment analysts believe this could be a sign of sellers’ exhaustion and potential reversal.
• XRP is at its lowest price since November 2024 amid mounting bearish sentiment.

Ripple XRP saw an onchain realized loss spike of $908 billion this week. According to Santiment, it is the largest such spike since 2022, highlighting the bearish sentiment surrounding the token.

A surge in realized losses signals that more holders are capitulating. This is not surprising given how XRP has struggled along with the rest of the market, with an over 25% decline in the past 30 days.

Santiment Analysts Say Spike in Realized Losses Might be Positive

However, Santiment analysts believe the massive realized losses might be a positive indicator as it signals that the market is near the bottom. They note that this is because extreme fear usually peaks before the price.

According to the analysts, a large number of investors selling at a loss means weak hands might be exiting the market. This could mean sellers are exhausted, leaving only diamond hands.

XRP Realized losses. Source: Santiment

It said:

“While this feels negative in the moment, it can actually be an important price signal. If many weak hands have already sold, there may be fewer sellers left to push prices lower. In simple terms, a wave of heavy realized losses can mean that much of the damage has already been done.”

Historical data also supports this opinion, with 2022 realized losses marking the start of a 114% rise in XRP’s value over seven months. However, the analysts acknowledged that this does not guarantee an immediate rally but makes a bounce more likely.

XRP Continues Decline as Bearish Sentiments Mount

Despite optimism about XRP’s turnaround, the token is currently trending downward with over 4% drop in the past 24 hours. It is now trading at $1.39  with a year-to-date drop of over 25%.

Unsurprisingly, the performance has undermined previous bullish predictions for the token in 2026. Analysts at Standard Chartered Bank, who had predicted that XRP could hit $8 by the end of 2026, have now revised their target to $2.80.

In an investor note, Standard Chartered’s head of digital assets research, Geoffrey Kendrick, said they expect further short-term declines in the asset, which is why they lowered their forecast.

However, he added that XRP’s performance will likely mirror that of ETH. The bank had revised its targets for all major crypto assets following the recent price performance.

He wrote:

“We see XRP keeping pace with ETH. Both are likely to benefit from the further development of stablecoins and tokenised real-world assets.”

Even with XRP trading at its lowest level since November 2024, the project continues to see adoption. Ripple continues to expand its regulatory compliance status while also seeing adoption by several institutions. The latest is Deutsche Bank, which is integrating Ripple technology into its cross-border payment infrastructure.

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