XRP investors are increasingly offloading their holdings at a loss, marking a textbook capitulation phase, according to on-chain data from Glassnode. The 90-day moving average of XRP’s realized profit-to-loss ratio has collapsed to just 0.38, meaning that for every dollar of gains realized, roughly $2.63 in losses are being booked. This stands in stark contrast to the ratio’s peak of 50 during the 2025 bull run, when profit-takers dominated by a staggering 50-to-1 margin.
The sharp decline below the 1.0 threshold is widely interpreted as a hallmark of market exhaustion, where weary holders finally surrender, often near cycle bottoms. At press time, XRP was trading around $1.11, down about 40% year-to-date, far below its July 2025 high above $3.60. While capitulation events don’t guarantee an immediate reversal, they historically precede stabilization phases, as weak hands exit and selling pressure dissipates.
The sell-off coincides with a broader crypto market correction fueled by regulatory uncertainty and macroeconomic headwinds. For XRP, the data underscores the psychological strain on retail participants who bought at elevated levels. Although current on-chain metrics reflect deep bearish sentiment, extreme loss realization has in the past set the stage for recoveries—provided the underlying fundamentals remain intact. Investors are advised to monitor verifiable data rather than react emotionally to price swings.
