XRP experiences sharp sell-off due to rapidly declining profit-to-loss ratio.

crypthub

6/9/2026, 11:10:59 PM

On-Chain Warning Signals

Glassnode reports that key indicators show intense capitulation for XRP. The Realized Profit-to-Loss Ratio has fallen to a low of 0.38, which is the lowest level seen since 2024. This metric suggests that the majority of participants are exiting their positions at a loss. Furthermore, network activity has dropped significantly. Transaction fees saw a substantial 91.5% decline, indicating a sharp contraction in organic demand.

Bear Market Cycle Analysis

XRP has recently retraced nearly 15% from its previous highs. Although historical bear cycles can be very long, analysts note that the duration of these declines is diminishing. One analyst suggests that the territory for marking a historical bottom is rapidly approaching. The price closing below the 200-week Simple Moving Average (SMA) could also signal that structural support is forming.

Potential Rally Targets

Another market observer suggests XRP may be approaching a major historical buying zone. Support is currently noted between the $0.70 and $0.90 levels. If this crucial support area holds, a rally back towards the $3 resistance seems realistic. Breaking the eight-year resistance level at approximately $3.30 could set the next major macro target between $8 and $13.