XRP price drops to $1.04 as capitulation increases

The XRP price is under significant pressure. Glassnode signals that the 90-day moving average of the realised profit/loss ratio has further declined to 0.33. This is the lowest level since August 2022 and a clear sign that an increasing number of investors are selling at a loss.

XRP is available at OKX and Bybit.

What does the Glassnode data say?

According to on-chain analysis firm Glassnode, the XRP price is shrinking towards $1,04. while the 90-day moving average of the realised profit/loss ratio has reached a new low. A ratio below 1 means that more loss-making transactions are occurring than profitable ones. Currently, that ratio stands at just 0.33, indicating that losses far outweigh profits.

The Glassnode chart shows that this level is even lower than during previous bear markets in 2018 and 2019. It suggests that a large portion of XRP holders are currently choosing to sell their positions, even if it means taking a loss on their investment.

Capitulation increases among XRP investors

Glassnode states that each further decline in this ratio shows that a growing number of market participants are exiting at a loss. Profit-taking is now barely able to compensate for this. This pattern is known as capitulation, a phase in which investors lose confidence and sell off en masse, regardless of the price.

Whether this marks the start of a further downturn or rather a bottom forming is still unclear. Historically, extreme capitulation sometimes precedes a recovery, as selling pressure eventually becomes exhausted. Nevertheless, the current data offers little reason for optimism in the short term, as long as the XRP price continues to fall and the ratio remains under pressure.