Nearly 70% down from the 2025 high around $3.65, the drop didn’t happen overnight. First we saw lower highs. Then every bounce got weaker. That wasn’t accumulation. That was distribution happening in slow motion.
When key support finally cracked, everything accelerated. Stops got triggered. Leverage got wiped. Open Interest collapsed as traders were forced out. On-chain, coins started moving to exchanges as weaker hands tapped out. Realized losses spiked to roughly $908 million the biggest capitulation event since 2022. That kind of number usually signals panic, not strategy.
But here’s where it gets interesting.
While short-term traders were de-risking, larger wallets were absorbing supply. Exchange reserves have dropped to multi-year lows even as whale flows increased. Spot ETF inflows quietly continued, soaking up distressed coins. Funding stayed negative for nearly two weeks straight, and sentiment fell into extreme fear territory. Historically, that’s late-stage pain.
Back in 2022, XRP saw a $1.93 billion realized-loss event before rebounding 114% over the following months. Today’s structure is different more ETF participation, clearer regulation, stronger derivatives markets. That could slow any recovery, but it also suggests a more mature liquidity environment.
Volatility is compressing. Sell pressure is fading. The panic phase may be ending.
This doesn’t guarantee a straight-line recovery. But structurally, XRP looks closer to exhaustion than fresh breakdown.
The question now isn’t whether fear is high.
It’s whether enough supply has already changed hands.
#TokenizedRealEstate #TrumpNewTariffs #BTCMiningDifficultyIncrease