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XRP Faces Critical On-Chain Capitulation Phase

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XRP is entering a pivotal period where on-chain metrics are taking precedence over broader market narratives. The token's recent sharp rise in realized losses, coupled with investors moving coins below purchase prices, signals classic capitulation behavior. This often precedes potential market bottoms, suggesting a reset may be underway.

Simultaneously, XRP ETF inflows have collapsed by 93%, indicating significant institutional withdrawal during this volatile phase. The combination of capitulation signals and diminished institutional support creates a critical juncture for XRP. Market participants should monitor whether this leads to a healthy reset or requires extended repair, with on-chain cost basis and leverage data becoming key indicators in the coming weeks.

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