XRP Plunges 24% as Panic Selling Overwhelms Historical Support Levels

XRP, one of the largest cryptocurrencies by market cap, has tumbled sharply this week, shedding nearly a quarter of its value as a wave of panic selling disrupts its typical recovery patterns. The sell-off has pushed the token to its lowest closing level since late 2024, raising questions about its near-term trajectory.

The downturn reflects a broader cooling in the digital asset market but is particularly pronounced for XRP. On-chain metrics, often used to gauge investor sentiment, paint a concerning picture. The Net Unrealized Profit and Loss (NUPL) indicator is nearing what analysts term the "capitulation zone," where unrealized losses across the network significantly outweigh gains. Historically, such levels have sometimes preceded accumulation, but current data shows no clear shift.

"The historical playbook isn't working right now," said Marcus Thorne, a veteran crypto market strategist. "We're seeing classic fear signals—loss-making transactions dominating volume and massive tokens moving to exchanges—but the usual buyer support at these levels is absent. It suggests a deeper reassessment of XRP's positioning is underway."

Data from blockchain analytics firms underscores the pressure. On a single day last week, transactions realized at a loss totaled $2.51 billion, dwarfing profit-taking of $567 million. Furthermore, over 97 million XRP, worth approximately $140 million, flooded onto exchange wallets in a three-day span, a move typically interpreted as preparation to sell.

At press time, XRP is trading around $1.44, having breached the $1.47 support. The next significant technical level is seen at $1.37. A break below that could open the path toward $1.28, extending the corrective phase. For bulls, a recovery above $1.58 is needed to signal any potential trend reversal.

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Market Voices: Divergent Views on the Drop

Liam Chen, Portfolio Manager at Horizon Digital Assets: "This is a liquidity-driven shakeout amplified by negative beta. XRP often moves more sharply than BTC in downturns. The fundamentals of the Ripple ecosystem haven't changed overnight. For disciplined investors, this volatility creates entry points, though timing the bottom remains risky."

Sarah J. Miller, Independent Crypto Analyst: "The sheer volume of tokens moving to exchanges is alarming. It's not just weak hands; it looks like some larger holders are de-risking. Until those inflows subside, any bounce will likely be sold into. The market is questioning whether XRP's legal clarity has already been fully priced in."

"CryptoRick," a prominent retail trader on social platform X: "This is an absolute disgrace. We held through the SEC lawsuit for years, and *this* is the reward? The so-called 'recovery cues' were a trap. The project needs to deliver real utility, not just rely on past legal wins, or it'll keep bleeding against ETH and SOL."

Dr. Anya Petrova, Financial Technology Professor: "The data shows a textbook emotion-driven market. The divergence between loss-making and profit-taking transactions is extreme. While painful, this often exhaustes the selling pressure. However, in a macro environment where interest rates remain elevated, the recovery period may be longer than in previous cycles."

This analysis is based on market data and on-chain metrics. It is for informational purposes only and does not constitute financial advice.