XRP Sees Intense Capitulation As Realized Profit-To-Loss Ratio Plunges

As the XRP worth makes an attempt to rebound from its current lows, Glassnode has shared key on-chain metrics pointing to weakening momentum and “intense capitulation.”

XRP Profit/Loss Ratio Falls To Lowest Levels Since 2024

On Tuesday, market intelligence platform Glassnode revealed that XRP is flashing warning indicators, with key on-chain indicators pointing to widespread capitulation and lowering community exercise.

In an X put up, Glassnode researchers highlighted that the 90-day transferring common (MA) of the altcoin’s Realized Profit-to-Loss Ratio has fallen to an space traditionally related to deeper downtrends and intervals of market capitulation.

Notably, the important thing metric has dropped to 0.38, its lowest stage since 2024, which means that for each greenback of losses realized available in the market, solely 38 cents in revenue are being taken. This marks a major reversal from the 2025 peak, when the ratio surged to 50, indicating profit-takers outpaced loss-sellers by an element of fifty.

That dynamic has now absolutely inverted, Glassnode affirmed, including {that a} ratio this low suggests that almost all individuals transferring XRP are exiting their positions at a loss, which is “a trademark of intense capitulation.”

In addition, the blockchain analytics agency identified that network exercise has declined considerably. According to the info, the 90-day common of whole transaction charges paid on the XRP community has fallen from 5,900 XRP in February 2025 to only 500 XRP, representing a 91.5% drop.

“A drop of this magnitude is just not a payment market adjustment. It displays a near-total contraction in natural transaction demand on the community for the reason that speculative peak,” Glassnode affirmed.

The drop in these indicators suggests investor confidence has weakened, and the market has shifted to decreased speculative urge for food with subdued participation.

Is XRP’s Bottom Near?

Over the previous two weeks, XRP’s worth has retraced practically 15%, falling to its lowest ranges since November 2024. Amid this efficiency, analyst ChartNerd famous that the cryptocurrency’s bear markets have traditionally lasted 400-790 days with 85-96% drops.

Currently, the altcoin has solely corrected for roughly 350 days, with a 71% retracement from the July highs. However, “the length and % depth of those bears are diminishing over time; subsequently, the territory for marking a historic backside between now and EOY is quick approaching,” he said.

He additionally noticed that the altcoin closed under its 200-week Simple Moving Average (SMA) final week, which may additionally sign that the underside could also be on the horizon. As he explained, throughout prior cycles, a structural backside shaped between 8 and 29 weeks after the primary weekly shut under this SMA, suggesting that XRP may start forming its backside within the coming months, if historical past repeats.

Meanwhile, market watcher Ali Martinez noted that XRP could possibly be mirroring the identical sample it has repeated since 2018, as it could be approaching its largest shopping for zone within the final eight years.

“For practically a decade, each contact of this rising trendline has marked a serious turning level, sending XRP again towards the $3 resistance,” the analyst said, including that the cryptocurrency is at the moment approaching this trendline once more, with help sitting between the $0.70 and $0.90 ranges.

If this zone holds, a rally again to $3 turns into “a sensible state of affairs.” Moreover, if XRP lastly breaks above the eight-year resistance, round $3.30, the subsequent macro goal could also be between $8 and $13, the analyst concluded.