On-chain data from Glassnode reveals that selling pressure on XRP has reached extreme levels, with the 90-day moving average profit/loss ratio plummeting to 0.33 — the lowest since August 2022. This metric, which compares the number of XRP transactions that realize a profit versus those that realize a loss, now indicates that for every one profitable sale, roughly three are being executed at a loss. The reading signals widespread capitulation among XRP holders, who are increasingly opting to cut their positions despite incurring losses.
The ratio’s decline below 1.0 is a clear sign that loss-making exits dominate, but a value of 0.33 marks a particularly severe state of fear and sell-side exhaustion. The last time the metric was this depressed was in the summer of 2022, when the broader crypto market was reeling from the failures of several lending platforms and a pervasive risk-off environment. The recurrence now highlights deep bearish sentiment surrounding XRP, especially as its price has fallen to $1.04, a sharp pullback from previous highs.
While capitulation episodes often breed short-term pain, they are historically watched as potential precursors to market bottoms. The mass exit of so-called “weak hands” can remove persistent sell pressure and, if buying interest materializes, pave the way for stabilization or recovery. However, no guarantees exist—August 2022’s capitulation was followed by a prolonged period of sideways trading rather than an immediate rebound.
The current dynamic is not just a price story; it also reflects a vacuum in trading activity, with some reporting virtually stagnant volume, underscoring the wait-and-see posture among market participants. Traders are increasingly focused on key support levels and Bitcoin’s trajectory, as XRP often moves in tandem with broader crypto macro trends. On-chain metrics, like the 90-day SMA of the profit/loss ratio, will remain a key barometer for gauging whether selling exhaustion will eventually translate into renewed buying momentum.
