XRP's Rare On-Chain Signal Sparks Capitulation Concerns

The cryptocurrency market has seen significant price movements in recent weeks, with XRP being one of the most notable examples. A recent surge in realized losses for XRP has drawn attention from traders, who are monitoring the metric as a potential sign of capitulation.

According to data from Santiment, the spike in realized losses is the largest since 2022, reaching levels not seen in nearly four years. This has sparked discussions about a rare on-chain signal that preceded a 114% advance in XRP's price in the past.

The signal in question is often associated with capitulation, where holders sell their coins at a loss, leading to a clearing out of weaker positions. Historically, such spikes have been followed by strong rallies, but it remains to be seen whether this will repeat itself.