The price of XRP may be approaching a critical turning point after new on-chain data revealed one of the most extreme events in years. According to Santiment analysis, XRP has just hit its record high the biggest spike in losses experienced since 2022a development that preceded a major price recovery. The data is now fueling expectations that a possible bottom is in place, with a break above $2 increasingly within reach if history repeats itself.
XRP Price Bearish Signs Appear After Historic Loss Spike
Santiment’s Network Realized Profit/Loss weekly chart, which tracks five years of XRP and price action, it was revealed a dramatic increase in on-chain gain losses. The latest reading came in at around -908 million XRP, which is a huge mark capitulation event from November 2022, when the weekly losses reached about -1.93 billion.
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Significantly, the capitulation event of 2022 occurs after a period of oppression and decline. At the time, the price of XRP had been falling for months before the 1.93 billion reading was published. This showed that investors were selling at huge losses near what later proved to be a low price. After that point, the trend was reversed, and in the next eight months, the price of XRP increased by more than 114%.
Based on Santiment’s analysis, the current structure of XRP shows this setup for 2022. Cryptocurrency recently it dropped from over $3 to the mid-$1 rangewith the chart showing the price hovering around $1.45 to $1.65 as visible losses emerge. This sharp increase in losses suggests widespread exploitation, as many owners appear to have sold at a low price. fear and panic rather than waiting for possible arrests.
Historically, this type of extreme loss is often seen near the bottom of the price, he raised that the recent 908 million reading in the current cycle could be a major bearish signal for XRP. The chart shows that the most negative readings converge around key reversal points, where selling pressure builds and begins to fade. Both in 2022 and the current setup, the losses found came after a long period of decline, reinforcing the view that The lowest price of XRP can be in the middle.
Possible Returns Towards $2
While comparisons to the 2022 capitulation event suggest a potential downside for XRP, it also points to possible bullish revival. After the -1.93 billion loss spike in 2022, XRP did not recover quickly. Instead, it gradually changed structure and produced a 114% rally over the next eight months.
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From the current price range near $1.35, a similar gain will push XRP above the $2 threshold. The chart shows that the previous capitulation stages were followed by the extension of the candles and strong high pressure once sales pressure easy. If the recent -908 million loss spike represents the same emotional extreme as seen in 2022, it could indicate that downward pressure is easing and a recovery may be nearing.
Featured image from Adobe Stock, chart from Tradingview.com
