XRP (XRP) dropped 24% over the past week amid sustained panic selling that pushed the altcoin to its lowest daily close since November 2024, with on-chain data showing more than 97 million tokens worth $140 million flowing into exchange wallets over three days as investors prioritize capital preservation over long-term holding.
What Happened: Panic Selling Dominates
The altcoin's Net Unrealized Profit and Loss metric is approaching the capitulation zone, a level where unrealized losses outweigh gains across the circulating supply. Historically, such conditions reduce selling incentives.
But XRP has not shown clear signs of this shift. Selling pressure remains dominant.
Transaction data from Santiment reveals the depth of fear gripping holders. On Feb. 2, XRP transactions executed at a loss reached $2.51 billion compared to just $567 million in profitable transfers.
Rising exchange balances reinforce the bearish signals. The $140 million worth of tokens moved onto exchanges over four days typically indicates intent to sell rather than hold.
Also Read: What $10B Iran Crypto Probe Means For Stablecoins
Why It Matters: Support Levels Under Threat
XRP traded near $1.44 at the time of original reporting after losing the $1.47 support level. The asset is trending toward $1.37.
If bearish conditions persist without meaningful buying interest, further downside appears likely. Losing $1.37 as support could accelerate selling pressure and push prices toward $1.28 in the coming days.
A recovery remains possible if sentiment shifts. Reclaiming $1.58 as support would signal renewed strength and could push XRP toward $1.70, restoring some bullish confidence.
Read Next: Musk's XAI Seeks Experts To Train AI On Crypto Markets, Paying Up To $100 Hourly