XRP Realized Losses Spike to Highest Level Since 2022, Will Price Rally Again?

XRP recorded its largest realized losses since 2022 this week, according to on-chain data from Santiment released on February 21. Santiment reported a weekly realized loss of $1.93 billion, matching levels last seen 39 months ago. 

XRP’s Extreme Realized Losses

As per Santiment data, XRP has posted its biggest on-chain realized loss spike since 2022. The previous weekly realized loss preceded a 114% price increase over the following eight months. That historical comparison has placed realized losses data at the center of current market focus.

Realized losses occur when investors sell coins below their purchase price. Notably, this metric shows capitulation, as traders lock in losses instead of holding positions. Santiment noted that such spikes often coincide with increased fear across the market.

However, heavy realized losses can reduce immediate selling pressure. Once weaker XRP holders exit positions, fewer sellers remain to drive prices lower. Historically, large realized loss spikes have appeared near market bottoms.

Santiment added that profit and loss data help track emotional extremes. Markets often move against prevailing sentiment during such periods. As a result, realized losses data has become a key indicator for XRP traders this week.

Analysts Outline Price Targets and Cycle Math

Meanwhile, several market analysts have predicted the next XRP prices. Analyst CryptoBull shared price targets of $13 for March, $27 for April, and $70 for May. The forecast covers a three-month horizon and focuses on XRP price performance.

In addition, Egrag Crypto analyzed previous cycle lows to project potential macro bottoms. He cited a 2020 cycle bottom of $0.10 and a 2022 cycle bottom of $0.28. That represents a 2.8 times increase between cycle lows.

Applying the same ratio, Egrag Crypto projected a potential next macro bottom between $0.75 and $0.85. He described the estimate as structural cycle math based on historical step-ups. Each cycle, he noted, has established a higher floor for XRP.

Why Is XRP Price Up Today?

Beyond realized losses and analyst projections, XRP’s price has shown short-term strength. At publication, XRP value was at $1.44, up by 1.55% in 24 hours despite remaining down 25.12% over the past month. The token moved in line with Bitcoin during a market-wide recovery.

Institutional developments also may have influenced the price recovery. Japan-based SBI Holdings launched a ¥10 billion on-chain bond issuance. The issuance, valued at $64.5 million, rewards investors with XRP. 

Also, European banking group Société Générale launched its euro stablecoin, EUR CoinVertible, on the XRP Ledger as part of a multi-chain strategy. Moreover, XRP spot ETFs recorded three consecutive weeks of net inflows, though the pace has slowed.