Data tracked by Glassnode suggests XRP holders may be going through a capitulation phase, a pattern that often appears when markets approach a bottom.
XRP investors are increasingly realizing losses as selling pressure builds, a classic signal of capitulation in market behavior.
According to Glassnode, the 90-day moving average of XRP’s realized profit-to-loss ratio has dropped to 0.38.
In practical terms, that means for every $1 of realized losses, investors are only locking in about $0.38 in profits—indicating that most tokens being moved on-chain are currently underwater.
This represents a sharp reversal from the 2025 peak, when the same ratio reached 50, meaning profit-taking outweighed loss realization by 50 to 1.
A reading well below 1 is commonly associated with capitulation phases, when long-suffering holders finally sell after enduring extended drawdowns. It typically reflects heightened fear, stress, or forced liquidation.
While such conditions do not guarantee an exact market bottom, they often occur near the late stages of downtrends, suggesting XRP may be approaching a period of exhaustion in selling pressure.
At the time of writing, the payments-focused token is trading around $1.11, down nearly 40% year-to-date. XRP previously reached a high above $3.60 last July.
