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XRP Fell 24% in a Week. Massive $140M Sell-Off Pressures the Price
The cryptocurrency $XRP has entered a sharp downtrend, losing nearly a quarter of its value over the past week. The current decline has placed the asset in a vulnerable position, breaking typical historical recovery patterns.
Prolonged price weakness suggests that the current correction may alter the asset’s market behavior if demand does not recover soon.
Capitulation Indicators and Market Cycles
The Net Unrealized Profit/Loss (NUPL) indicator has nearly reached the capitulation zone. At this stage, the volume of unrealized losses in circulation begins to exceed minor profits. Historically, such conditions reduce incentives for further selling, as investors shift to an accumulation phase at lower price levels.
However, $XRP currently shows no clear signs of a trend reversal. Selling pressure remains the dominant factor, preventing the NUPL indicator from transitioning into a recovery phase. Without renewed buying activity, the asset continues to trade under cautious expectations, ignoring typical bullish signals.
$XRP Net Unrealized Profit/Loss (NUPL). Source: Glassnode
Rising Investor Panic
On-chain transaction data confirms the prolonged nature of the sell-off. Over the past week, the volume of transactions executed at a loss consistently exceeded profitable transfers. For example, on February 2, realized losses totaled $2.51 billion compared to only $567 million in profits.
This imbalance indicates declining confidence in the asset. Amid falling prices and broader market instability, $XRP holders are prioritizing capital preservation. Continued dominance of loss-making transactions may lead to deeper declines if market sentiment does not improve in the near term.
$XRP Transactions: Profit and Loss. Source: Santiment
An additional negative factor is exchange balance statistics. Over the past three days, more than 97 million $XRP worth approximately $140 million flowed into exchange wallets. Rising exchange reserves traditionally signal investors’ intent to liquidate positions, increasing supply and suppressing demand.
$XRP Exchange Balances. Source: Glassnode
Technical Analysis and Key Support Levels
Over the past week, $XRP fell by 24.4% and is now trading around $1.44. The $1.47 support level has already been lost, and the price is now gravitating toward $1.37. Wednesday marked the lowest daily close for $XRP since November 2024 — the current market structure has clearly weakened.
If negative momentum continues and significant demand fails to appear, the decline may persist. A breakdown below $1.37 could accelerate the sell-off. In that case, $XRP could drop toward $1.28 in the coming days, making the correction more pronounced.
$XRP Price Analysis. Source: TradingView
There is still a chance for recovery if sentiment shifts. A return to the $1.58 support level would serve as a signal for renewed buying. Such a move could push $XRP toward $1.70. Consolidation above this level would help restore confidence and offset part of the recent losses.
See also: "Bitcoin Tests the $70,000 Level Amid Macro Pressure and ETF Outflows"
