The XRP price may be approaching a decisive turning point after new on-chain data revealed one of the most extreme capitulation events in years. According to Santiment’s analysis, XRP has just registered its value largest realized loss peak since 2022a development that previously preceded a major price recovery. The data now fuels expectations that there could be a bottom, with a return to above $2 increasingly within reach if history repeats itself.
XRP price bottom signals appear after historical loss peak
Santiment’s weekly Network Realized Profit/Loss chart, which tracks five years of XRP alongside price action, has revealed a dramatic spike in realized losses on the chain. The latest readings came to around -908 million XRP, which is the largest capitulation event since November 2022, when weekly realized losses were almost -1.93 billion.
Related reading
Notably, the 2022 capitulation took place after a period of compression and decline. At the time, the price of XRP had been falling for months before the -1.93 billion value was printed. This showed that investors sold at heavy losses near what later turned out to be a price floor. After that point, the trend reversed and over the next eight months, the XRP price rose by more than 114%.
Based on Santiment’s analysis, XRP’s current structure reflects this 2022 setup. The cryptocurrency recently fell from above $3 to the mid-$1 rangewith the chart showing that the price was hovering around $1.45 to $1.65 as the realized loss peak emerged. This sharp increase in losses indicates widespread capitulation, as many holders appear to have sold at a loss fear and panic instead of waiting for a possible recovery.
Historically, this type of extreme loss spike often occurs near price bottoms. suggestive that the recent value of -908 million in the current cycle could be a major bottom signal for XRP. The chart shows that the most negative numbers are around key inflection points, where selling pressure peaks and then begins to wane. In both 2022 and the current setup, the realized loss peak came after a prolonged downward trend, reinforcing the idea that a The XRP price bottom could be in.
A possible recovery towards $2
While the comparison to the capitulation in 2022 suggests a potential bottom for XRP, it does a potential bullish recovery. After the realized loss peak of -1.93 billion in 2022, XRP did not immediately recover. Instead, the structure gradually changed, fueling a 114% rally over the next eight months.
Related reading
From the current price range of near $1.35, a similar gain would push XRP well above the $2 threshold. The chart shows that previous capitulation phases were followed by expanding candles and stronger upward momentum sales pressure relaxed. If the recent peak in realized losses of -908 million represents a similar emotional extreme to that in 2022, it could indicate that downward pressure is easing and a recovery may be approaching.
Featured image from Adobe Stock, chart from Tradingview.com