📉 BREAKING: XRP has seen its largest on-chain realized loss spike since 2022. When the previous weekly milestone of -1.93B in realized losses occurred 39 months ago, $XRP proceeded to jump +114% over the next 8 months.

💸 Significant realized losses happen when a large number of investors sell their coins at a price lower than what they originally paid. This usually coincides with fear taking over. When traders panic and capitulate, they lock in their losses instead of holding and hoping for a rebound. While this feels negative in the moment, it can actually be an important price signal. If many weak hands have already sold, there may be fewer sellers left to push prices lower. In simple terms, a wave of heavy realized losses can mean that much of the damage has already been done.

📈 Historically, large spikes in realized losses often show up near market bottoms. This is because extreme fear tends to peak before price does. Once sellers are exhausted, even a small amount of new buying pressure can push prices higher. That does not guarantee an immediate rally, but it increases the probability of a bounce.

👀 Watching realized profit and loss data can help identify moments when emotions are stretched to extremes. Markets often move in the opposite direction of the crowd, and major realized loss spikes are one way to measure when that emotional tipping point may be happening. Link here!