According to CoinGape and other industry outlets, XRP’s realized losses for this week reached $1.93 billion, a level last seen about 39 months ago. Realized loss measures the difference between the price at which a coin was bought and the price at which it was sold for a loss. This dynamic reflects a panic-driven sell-off where investors cut losses and exit positions, often filling markets with fear. Yet some analysts argue that substantial realized losses can actually clear the way for a comeback by removing long-term holders who are unwilling to weather further declines.

Experts note that when investors abandon positions in this way, selling pressure may ease as the market approaches a bottom. Santiment has previously highlighted that after similar losses, XRP experienced a 114% price rebound over eight months, suggesting the bottoming phase can be followed by a powerful rally. Therefore, the newly reported loss data is watched closely by traders as a key signal of potential turning points.

While the data underscores the severity of current losses, it does not guarantee a near-term reversal. Crypto markets remain highly volatile, and investors should interpret these signals within the broader context of other on-chain indicators.

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