XRP has recorded its largest on-chain realized loss spike since 2022, data from Santiment shows. This indicates investors are selling at a loss, which can sometimes signal capitulation. Meanwhile, market analysis highlights a critical support zone between $1.22 and $1.28, where buying activity has been observed. A confirmed break above $1.50 is seen as necessary to shift the short-term bearish trend.
On-chain data shows XRP has experienced its most significant spike in realized losses since 2022. According to Santiment, these losses occur when investors sell their holdings below their purchase price. The scale of this event is comparable to a spike 39 months ago, which preceded an eight-month price surge of over 114%.
This type of market behavior often indicates weak participants are exiting, which can reduce selling pressure. Analysts note that such extreme fear is frequently observed near potential market bottoms. However, a sustainable recovery requires an exhaustion of seller supply.
Market charts indicate XRP is testing a crucial support zone between $1.22 and $1.28. Analyst BitGuru pointed out the token is near this key level following a prolonged downtrend. The price action in this region has shown signs of buying interest, with long lower wicks forming on the charts.
This suggests a potential short-term base is forming at this support level. The market has held above this zone since testing it, indicating tentative stability. The broader trend, however, remains negative until specific resistance levels are breached.
For a trend reversal to gain confirmation, XRP needs to break above the $1.42 to $1.50 resistance range. Such a move could trigger a corrective rally toward previous supply zones near $1.90 to $2.20. A failure to hold the $1.22 support, however, would likely lead to further declines.
Market participants are closely monitoring these realized loss metrics and key chart levels. The current situation presents a mix of potential exhaustion signals and critical technical tests.
