XRP Records Worst Weekly Drop Since 2022, Analysts Signal Possible Shakeout Before Q2 Move

Overview

XRP is currently experiencing one of its most challenging periods in recent years, marked by significant price declines and increased market pressure. Recent data indicates a sharp weekly downturn for the token, prompting analysts to debate whether this sell-off signifies the beginning of a deeper correction or the latter stages of a broader market shakeout.

Recent Price Action

XRP has recorded its steepest weekly drop since 2022, with current trading hovering around the $1.33 to $1.36 range. Over the past month, the token has seen a decline of approximately 30%, and it remains over 60% below its peak price of $3.65 reached in July 2025. This downturn is reflective of a wider trend across the digital asset market, where risk appetite continues to be subdued amidst ongoing macroeconomic uncertainties.

Capitulation Signals Emerge

One notable development is the significant increase in realized losses within the XRP network. On-chain data reveals that investors have locked in nearly $1.93 billion in losses over the past week, marking the largest increase in approximately 39 months. Realized losses occur when holders sell their assets at a price lower than their purchase price, often during periods of heightened panic. Historically, such spikes in realized losses have coincided with market capitulation phases, which typically see short-term holders exiting their positions while tokens transition to longer-term investors.

Despite the declining prices, trading activity remains robust. Spot trading volume surged past $2.3 billion within a 24-hour period, and both futures volume and open interest have also increased. This suggests that traders are actively positioning themselves in the market rather than withdrawing.

Key Levels and Market Dynamics

From a technical perspective, the $1.30 level has emerged as a critical support zone for XRP. The token briefly dipped below this threshold before recovering, indicating that buying interest persists. However, analysts caution that a confirmed breakdown below this level could lead to further declines, potentially targeting $1.20 or the psychological barrier of $1.00.

Some market observers believe that the current price structure resembles previous consolidation phases that preceded substantial rallies. According to this viewpoint, another decline toward the $1.10 area could occur as the market eliminates weaker participants before any sustained upward movement.

Momentum indicators also suggest that XRP is under pressure. The token continues to trade below key moving averages, and while the relative strength index indicates oversold conditions, there has yet to be a confirmed bullish reversal.

Structural Factors and Future Outlook

Beyond immediate price movements, there is growing attention on structural developments that could impact XRP’s performance moving into 2026. Analysts highlight improving regulatory clarity, institutional positioning, and planned upgrades to the XRP Ledger, which aim to enhance support for tokenized assets, lending functions, and compliant trading environments.

From Author

The current conditions surrounding XRP highlight the complexities of the crypto market, particularly when macroeconomic factors play a significant role in investor sentiment. The sharp decline in price and the surge in realized losses serve as critical indicators for market participants. While the trading volume suggests active engagement, the technical indicators and support levels will be vital in determining the future trajectory of XRP.

Impact on the Crypto Market

• XRP’s sharp decline reflects broader market weaknesses, impacting overall investor sentiment.
• Increased realized losses could signal capitulation, potentially leading to a market rebound if historical patterns hold.
• Elevated trading volumes indicate that traders are still active despite falling prices, suggesting a level of confidence in potential recovery.
• The critical support level at $1.30 will be closely monitored, as a breakdown could trigger further selling pressure.
• Structural improvements and regulatory clarity may provide a foundation for future growth, influencing investor strategies moving forward.