XRP just dropped 4% and on-chain data shows we have approximately 1.93 billion in realized losses in one week – the biggest peak since 2022. This means many holders have sold their positions at a loss, indicating significant panic selling. Historically, these types of capitulation moments often mark bottoms. Back in 2022, rising XRP then increased by over 114% over eight months. The logic is simple: when weak hands exit the market, coins move to long-term investors with stronger conviction. This creates more stability. But you need to be cautious. Yes, exhausted sellers are a good sign, but we are still in macro uncertainty and regulatory pressure. A sustainable recovery depends on whether demand picks up and selling pressure decreases in the coming weeks. For now, the data points to emotional extremes, but that doesn’t tell the whole story.

Looking at XRP and seeing that after another failed attempt to break above $1.45, the situation is becoming more interesting. The price dropped to $1.36, and this movement confirmed the downward impulse that started after failing to stay in the resistance zone. Trading volume increased by 74 percent — clearly showing that sellers have taken control. What’s curious is that despite downward price pressure, large wallets continue to accumulate XRP during declines, and spot ETFs have attracted about $1.24 billion in recent months. The signals are mixed — on one hand, there is institutional interest; on the other hand, after such a drop from the July 2025 high, the token remains roughly 60 percent below its peak. Technically, after breaking the $1.411 level, the descent accelerated toward the $1.40 mark. The key question now is whether the price can stay above $1.40. If yes, then after recovery, we might see an attempt to return to $1.45 and further to $1.55. If not, after a downward breakout, attention will shift to $1.33, and then to $1.00. It’s interesting to watch how the market will resolve the current compression between resistance and support lines.

Caught XRP's failed breakout this morning and it's getting interesting. Price tested $1.35 but couldn't hold, dropping back to $1.31. What caught my attention though isn't just the 2% move itself, but how it happened and what's brewing underneath. The volume spike on the rejection tells me sellers are still in control up there. More importantly, liquidity is drying up across major venues, which usually means bigger moves are coming once support or resistance actually gives way. I've been watching the order books thin out, and that's when things can get messy. Open interest is rising while price is falling, which signals traders are loading up on shorts. That's a bearish signal combined with weakening support levels. The $1.31 to $1.30 zone is the line to watch now. If that breaks, we could see a sharper drop toward $1.28. On the flip side, reclaiming $1.35 would be needed to flip the momentum. With liquidity this thin, expect exaggerated moves in either direction once one of these levels cracks. Not the most comfortable setup for swing traders, but definitely something to monitor closely. The next 24-48 hours should tell us which way this resolves.