XRP Hits a Four-Year Low: Investors Leaving the Market with Heavy Losses

As sell-offs at a loss gain momentum among XRP investors, the realized profit-to-loss ratio has dropped to its lowest level since July 2022.

The popular cryptocurrency XRP is passing through a critical threshold as market selling pressure deepens. Recent data shared by the on-chain data analysis platform Glassnode reveals that a significant portion of investors are exiting the market at a loss, and capitulation pressure is mounting. This situation continues to place a serious burden on the asset’s price action.

XRP Investors Selling at a Loss

According to current data, while the XRP price is trading around the $1.06 level, the realized profit-to-loss ratio based on the 90-day moving average has fallen to 0.26. This figure has been recorded as the lowest level since July 2022. In technical terms, this ratio indicates that for every $1 of loss realized in the market, only $0.26 of profit was generated. In other words, investors are opting to close their positions at a loss rather than taking profits.

Examining chart data shows that this sharp decline in the profit-to-loss ratio has deepened capitulation pressure in the market. The fact that profit-taking activities are insufficient to offset mounting losses proves that market participants are in a pessimistic mood. Every new low in the data signifies that a larger portion of investors leaving the market are in the red. Experts point out that such low levels typically represent periods when “weak hands” are flushed out and selling pressure reaches its peak.