Glassnode data indicates that XRP holders are entering a capitulation phase, a condition that can sometimes appear near market bottoms.

More investors are now selling XRP at a loss, a typical sign that selling pressure is being driven by exhaustion rather than conviction.

The 90-day moving average of XRP’s realized profit-to-loss ratio has fallen sharply to 0.38, according to Glassnode.

That implies that for every $1 of realized losses, only $0.38 in profits is being recorded—showing that most tokens being moved on-chain are currently held at a loss.

This is a major shift from the 2025 peak, when the ratio reached 50, meaning profits being realized far outweighed losses by 50-to-1.

A reading significantly below 1 is widely interpreted as a capitulation signal, where investors give up after prolonged drawdowns and sell under stress or forced conditions.

Although capitulation doesn’t guarantee an immediate bottom, it often appears in the later stages of downtrends, suggesting XRP may be moving closer to a selling exhaustion point.

At press time, XRP is trading around $1.11, down nearly 40% year to date. The token previously peaked above $3.60 last July.