XRP Sees Largest Realized Loss Since 2022, Potential Market Bottom Ahead

XRP has recently experienced its largest realized loss since 2022, with a weekly drawdown of -$1.93 billion. This event is significant because it has historically been followed by a strong multi-month rally in the altcoin's price.

Realized losses occur when investors sell their holdings below their original purchase price, which can be a sign of widespread panic and capitulation. The surge in realized losses suggests that even weaker hands are exiting positions at a loss, creating conditions for stabilization and eventual recovery.

The market context is one of ongoing volatility, with XRP trading around $1.41. However, on-chain data suggests that emotional extremes may already be unfolding beneath the surface.