XRP Capitulation Deepens as 90-Day SMA Falls to Lowest Level Since August 2022, Glassnode Reports

XRP is facing mounting selling pressure as on-chain data reveals a significant deterioration in investor sentiment. According to blockchain analytics firm Glassnode, XRP's 90-day Simple Moving Average (90D-SMA) has fallen to its lowest level since August 2022, highlighting a growing wave of capitulation among market participants.

The latest data suggests that an increasing number of XRP holders are realizing losses as they exit their positions, reflecting weaker market confidence following recent price volatility across the broader cryptocurrency market.

The update was also highlighted by Cointelegraph through its official X account, drawing renewed attention to XRP's market dynamics as investors closely monitor whether the digital asset is approaching a potential market bottom or facing additional downside pressure.

Source: XPost

What the 90-Day SMA Reveals

The 90-day Simple Moving Average is widely used by analysts to smooth short-term market fluctuations and identify broader trends in investor behavior.

Glassnode's latest analysis indicates that XRP's 90D-SMA has declined to levels not seen since August 2022, a period marked by significant weakness across the cryptocurrency market following one of the industry's most severe bear markets.

While the indicator itself does not predict future prices, it provides valuable insight into the average behavior of market participants over an extended period.

A sustained decline typically reflects weakening momentum and increasing selling activity, particularly when accompanied by heavy realized losses.

Capitulation Pressure Continues to Build

Capitulation occurs when investors abandon positions after extended periods of declining prices, often accepting significant losses rather than waiting for a potential recovery.

Historically, capitulation has represented one of the final stages of prolonged market corrections.

Glassnode's data suggests that more XRP holders are now exiting their investments at a loss, indicating growing frustration among participants who purchased the asset at higher price levels.

As losses accumulate, emotional selling often accelerates, contributing to additional downward pressure.

Although painful for investors, capitulation has historically marked important turning points in numerous financial markets.

Why Investors Are Selling

Several factors appear to be influencing current XRP market sentiment.

Broader weakness across the cryptocurrency market has reduced investor appetite for higher-risk digital assets.

Macroeconomic uncertainty, changing monetary policy expectations, regulatory developments, and fluctuations in Bitcoin's price have all contributed to increased volatility across the sector.

When overall market confidence weakens, altcoins such as XRP frequently experience larger price swings than Bitcoin due to their relatively higher risk profile.

This environment has encouraged some investors to reduce exposure while locking in losses rather than remaining invested through uncertain market conditions.

On-Chain Data Paints a Cautious Picture

Unlike traditional financial markets, blockchain networks provide publicly accessible transaction data that allows analysts to monitor investor behavior in real time.

Glassnode specializes in interpreting these on-chain metrics to identify trends that may not immediately appear through price charts alone.

The firm's latest observations suggest that realized losses among XRP holders have increased as more coins move on-chain at prices below their original acquisition cost.

Such activity often reflects reduced confidence among existing holders while highlighting the emotional nature of market cycles.

However, experienced investors frequently view on-chain capitulation metrics as useful indicators for assessing long-term market conditions.

Historical Comparisons

The last time XRP's 90-day SMA reached similar levels was during the challenging market environment of August 2022.

That period followed the collapse of several major cryptocurrency firms, declining liquidity, aggressive monetary tightening, and widespread risk aversion throughout global financial markets.

Although today's market structure differs in several important respects, comparisons with previous cycles provide valuable historical context.

Cryptocurrency markets have repeatedly demonstrated their tendency to experience deep corrections before eventually entering new recovery phases.

Nevertheless, every market cycle develops under unique economic and regulatory circumstances.

Bitcoin's Influence on XRP

Bitcoin continues serving as the primary driver of sentiment throughout the cryptocurrency industry.

When Bitcoin experiences sustained price weakness, alternative cryptocurrencies frequently face even greater volatility as investors reduce exposure to speculative assets.

Conversely, periods of Bitcoin strength often restore confidence across the broader digital asset market, supporting recovery among leading altcoins including XRP.

As a result, XRP's future performance remains closely linked to broader cryptocurrency market conditions rather than project-specific developments alone.

Regulatory Factors Remain Important

Beyond market sentiment, XRP continues attracting attention because of its unique regulatory history.

Legal developments involving Ripple have significantly influenced investor confidence over recent years.

Although several important legal milestones have provided greater clarity compared with earlier stages of the dispute, regulatory uncertainty continues influencing how some institutional investors approach XRP.

Future legal or regulatory announcements could therefore play a meaningful role in shaping market sentiment moving forward.

Could Capitulation Signal a Bottom?

One of the most debated questions among market analysts is whether capitulation signals the end of a market correction.

Historically, periods of widespread selling have sometimes preceded major recoveries because weaker hands exit the market while long-term investors gradually accumulate positions.

However, capitulation alone does not guarantee an immediate reversal.

Additional declines remain possible if macroeconomic conditions deteriorate further or investor confidence continues weakening.

For this reason, professional analysts generally combine on-chain data with technical analysis, macroeconomic indicators, and broader market trends before forming investment conclusions.

Long-Term Investors Remain Focused

Despite recent weakness, many long-term XRP supporters continue emphasizing the network's underlying utility within cross-border payments and blockchain-based financial infrastructure.

Supporters argue that temporary market cycles should not overshadow broader adoption trends.

Meanwhile, institutional interest in blockchain technology continues expanding across multiple sectors, including payments, tokenization, and financial settlement systems.

Whether XRP ultimately benefits from these structural developments remains a subject of ongoing debate among industry participants.

What Investors Should Watch Next

Several key developments are likely to influence XRP's direction in the coming weeks and months.

Investors will continue monitoring Bitcoin's overall trend, broader cryptocurrency market liquidity, macroeconomic data, central bank policy decisions, regulatory developments, and additional on-chain metrics published by blockchain analytics firms.

Should realized losses begin stabilizing while selling pressure gradually declines, market participants may interpret those changes as early signs of improving sentiment.

Conversely, continued deterioration in on-chain activity could indicate that market participants remain cautious.

The Bigger Picture

Glassnode's latest analysis underscores the emotional nature of cryptocurrency markets, where rapid shifts in sentiment frequently produce significant price volatility.

The decline of XRP's 90-day Simple Moving Average to its lowest level since August 2022 highlights increasing capitulation pressure as more investors choose to exit positions at a loss.

While such conditions often create uncertainty, they also provide valuable insights into the health of the broader market.

Whether the current phase ultimately represents the final stage of a correction or the beginning of additional weakness will depend on a combination of macroeconomic trends, regulatory developments, institutional participation, and overall investor confidence.

For now, XRP remains one of the digital assets most closely watched by both retail and institutional investors as they evaluate the next chapter in the evolving cryptocurrency market.

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Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

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