XRP just dropped 4% and on-chain data shows we have approximately 1.93 billion in realized losses in one week – the biggest peak since 2022. This means many holders have sold their positions at a loss, indicating significant panic selling.

Historically, these types of capitulation moments often mark bottoms. Back in 2022, rising XRP then increased by over 114% over eight months. The logic is simple: when weak hands exit the market, coins move to long-term investors with stronger conviction. This creates more stability.

But you need to be cautious. Yes, exhausted sellers are a good sign, but we are still in macro uncertainty and regulatory pressure. A sustainable recovery depends on whether demand picks up and selling pressure decreases in the coming weeks. For now, the data points to emotional extremes, but that doesn’t tell the whole story.