The XRP price may be approaching a decisive turning point after fresh on-chain data revealed one of the most extreme capitulation events in years. According to Santiment’s analysis, XRP just saw its performance biggest jump in realized losses since 2022a phenomenon that previously preceded significant price increases. The data is now fueling expectations that a bottom may be hitting and a return above $2 will become increasingly achievable if history repeats itself.

The lower XRP price signals come after a historic enhance in losses

Santiment Network’s weekly realized profit/loss chart showing five years of XRP along with price action includes revealed dramatic enhance in losses realized in the supply chain. The latest reading was around -908 million XRP, which is the highest capitulation event since November 2022, when weekly realized losses reached almost -1.93 billion.

It is worth noting that the capitulation in 2022 came after a period of compression and decline. During this time, the price of XRP had been trending down for months before a reading of -1.93 billion was printed. It showed investors sold with huge losses near what later turned out to be a price low. After this point, the trend reversed and over the next eight months, the price of XRP increased by over 114%.

Santiment’s analysis shows that the current structure of XRP reflects the configuration of 2022. The cryptocurrency recently dropped from above $3 to the mid-$1 rangewith the chart showing the price hovering around $1.45-$1.65 as the spike in realized losses occurs. This pointed enhance in losses suggests widespread capitulation, as many holders appear to have sold shares at a loss fear and panic instead of waiting for a potential rebound.

Historically, these types of extreme loss spikes usually occur near price floors, suggestion that the recent reading of -908 million in the current cycle could be a major lower signal for XRP. The chart shows that the most negative readings cluster around key inflection points where selling pressure peaks and then begins to fade. In both 2022 and the current situation, the pointed enhance in losses followed a prolonged downward trend, reinforcing the view that There may be a bottom in the XRP price.

Possible rebound towards $2

While the comparison to the 2022 capitulation event suggests a potential bottom for XRP, it also points to potential bullish recovery. After a spike in realized losses of -1.93 billion in 2022, XRP did not immediately rebound. Instead, it gradually changed the structure and drove growth of 114% over the next eight months.

From its current price range near $1.35, a similar enhance would push XRP well above the $2 mark. The chart shows that the previous phases of capitulation were followed by expanding candles and a once stronger upward impulse sales pressure softened. If the recent jump in realized losses of -908 million represents an emotional extreme similar to that seen in 2022, it could indicate that downward pressure is easing and a recovery may be approaching.

Featured image from Adobe Stock, chart from Tradingview.com